Will ETH Crash Below $2K This Week After Key Breakdown?

Ethereum has come under renewed selling pressure after failing to reclaim a key dynamic resistance cluster around the 100-day moving average and the lower boundary of the previous consolidation range.

While the broader market remains under pressure, ETH is now approaching a critical support region where short-term reactions may emerge. However, unless buyers quickly reclaim lost levels, the path of least resistance appears tilted toward further downside continuation.

Ethereum Price Analysis: The Daily Chart

On the daily timeframe, ETH faced a strong rejection from the confluence of the 100-day moving average near the $2.1K-$2.15K region and the broken wedge support structure, which had previously acted as dynamic support for several months.

Following this rejection, the asset decisively broke below the wedge formation, confirming a notable bearish structural shift in the market. This breakdown signals weakening bullish momentum and increasing dominance from sellers.

Currently, ETH is trading around the $2K psychological support zone after losing the important $2.1K level. The overall structure suggests that the recent move could evolve into a classic breakdown-and-pullback scenario, where price may temporarily retest the broken wedge boundary and the $2.1K-$2.15K resistance area before continuing lower.

If bearish momentum persists, the next major downside target lies near the substantial $1.8K support region, which previously acted as a strong demand zone during the February capitulation event. A break below that area could expose Ethereum to deeper corrections toward the lower macro support levels around $1.55K-$1.6K.

On the bullish side, reclaiming the 100-day MA around $2.15K would be the first sign that buyers are attempting to invalidate the recent bearish breakdown.

ETH/USDT 4-Hour Chart

On the 4-hour timeframe, Ethereum’s market structure remains clearly bearish, reflecting growing fear and uncertainty among market participants after the sharp impulsive decline from the $2.4K region.

The price has consistently formed lower highs and lower lows, while recent selling pressure accelerated after ETH lost the important ascending support trendline near $2.2K-$2.25K. This breakdown triggered another wave of liquidation-driven selling, pushing the asset directly into a key 4-hour order block located around the $1.95K-$2K support zone.

This region is highly important because it has served as a major reaction area for an extended period of time and likely contains significant resting liquidity. As a result, Ethereum could experience a short-term corrective bullish retracement from this zone before any continuation toward lower prices.

In the event of a rebound, the primary pullback target sits around the $2.1K-$2.15K area, which now acts as the nearest supply zone and potential pullback resistance. This region also coincides with the previously broken market structure, increasing the probability of renewed selling pressure if the price revisits it.

However, unless ETH manages to reclaim and stabilize above the $2.2K region, the broader short-term trend remains bearish, and any recovery rally may simply be considered a corrective move within a larger downtrend.

Sentiment Analysis

The latest Ethereum liquidation heatmap reveals a substantial liquidity concentration below the current market price, with the most significant cluster positioned around the $1.8K region. This zone has emerged as a major liquidity magnet, containing a dense accumulation of leveraged positions that could attract price action in the coming phase.

Historically, Ethereum tends to gravitate toward high-liquidity regions before establishing a meaningful reversal. The recent decline and weak recovery structure suggest that the market may still require a final liquidity sweep to fully reset positioning and flush out remaining leveraged participants. As a result, the $1.8K area becomes a critical level to monitor, as it holds the potential to absorb incoming selling pressure while clearing a large portion of resting liquidity.

From a market mechanics perspective, such liquidity grabs often occur before the beginning of a stronger impulsive trend. If Ethereum eventually taps into this zone, it could trigger panic-driven selling and forced liquidations, creating favorable conditions for large players to accumulate at discounted prices. Consequently, while short-term rebounds remain possible, the broader liquidity structure indicates that Ethereum may still be vulnerable to a deeper corrective move toward the $1.8K cluster before a sustainable bullish expansion can begin.