Ethereum price extended its decline, slipping below the critical $2,000 floor as selling pressure persists. ETH dipped as low as $1,955 before a minor recovery, and now trades below $2,000, with the pair consolidating near these levels. The breakdown from the $2,000 support marks a bearish shift for the second-largest crypto by market cap.
On-chain data shows resistance at $2,010 from a newly formed bearish trend line on the hourly chart, with the price also below the 100-hourly Simple Moving Average. ETH failed to hold above $2,020, mirroring Bitcoin's weakness, and after a brief bounce to the 50% Fib retracement level, bears reasserted control near the $2,000 psychological handle. Total value locked across Ethereum DeFi protocols has also seen slight declines amid the price action.
Regulatory uncertainties continue to weigh on sentiment. The SEC's ongoing scrutiny of staking services and classification of ETH as a potential security in some enforcement actions keeps traders cautious. Meanwhile, global regulators remain divided on how to treat ether, with the EU's MiCA framework providing clarity but the U.S. lacking a consistent approach, adding to headwinds.
Ethereum's market cap has dipped to around $240 billion, maintaining its position as the second-largest crypto but losing relative dominance slightly as Bitcoin's share rises. The correlation with BTC remains high, meaning further downside in bitcoin could drag ETH lower. ETH's current trading levels are well below its 2024 highs near $4,000, underscoring the extended bearish phase.
Countering the bearish view, some analysts note that the $1,955 low held as support, and a sustained move above $2,010 could invalidate the current downtrend. Community sentiment on X is split, with some traders positioning for a bounce from oversold levels, while others see further declines toward $1,900 as likely given the break of $2,000.