Ethereum price was stuck below the important $2,000 support today, February 16, as it erased gains made over the weekend.
Summary
- Ethereum price may be at risk of falling to the key support of $1,500.
- It has formed a bearish pennant pattern on the daily time chart.
- The bearish catalysts have surpassed the bullish ones.
Ethereum (ETH) token was trading at $1,980, substantially less than its all-time high of $4,960. Technical analysis suggests that the coin will likely fall to the key support at $1,500 before reaching the psychological level of $2,500.
Ethereum Price Technical Analysis Suggests a Retracement to $1,500 Is Likely
The daily time chart shows that ETH price remains in a technical bear market after falling 60% from its all-time high. A bearish pennant pattern is slowly forming, consisting of a vertical line and a symmetrical triangle.
You have completed the formation of the flagpole line and are now in the triangle section, the two lines of which are about to converge. In most cases, a bearish breakout typically occurs when these two lines are about to meet.
ETH price has remained below all moving averages and the 78.6% Fibonacci retracement level. It has also moved below the strong pivot, inverse level of the Murrey Mathematical Lines.
Therefore, the most likely ETH price prediction is bearish, with the initial target at the psychological level of $1,500, a few points above its lowest level in April last year.
The bearish outlook is also supported by a Polymarket surveywhich puts the odds of it falling to $1,500 this year at 72%.
ETH price to fall as demand declines
The main reason why the price of ETH may first fall to $1,500 is that demand has remained low in recent months. A good example of the decline in demand is the events taking place in the futures market, where open interest has fallen to $23 billion, its lowest level since 2024. It has plummeted from last year’s high of nearly $70 billion.
Detect Ethereum ETF Outflows They have continued this month. These funds have shed more than $326 million in assets this month, the fourth consecutive month in the red. They have lost more than $2 billion in assets in the last four months.
These bearish catalysts have offset the positive Ethereum news. For example, the betting queue has increased to a record level, and the betting rate reached the key milestone of 30%.
The supply of ETH on exchanges has fallen to an all-time low, while transactions, fees, and active addresses have skyrocketed. Ethereum has also become the preferred chain for the burgeoning real-world asset tokenization industry.
