 ▲ Ethereum (ETH), Cryptocurrency Decline/AI-Generated Image © |
As risk-off sentiment spreads across the broader virtual asset market, Ethereum (ETH) fell more than 4% in a single day, slipping below the $2,000 level.
According to CoinMarketCap on March 7 (local time), ETH declined approximately 4.47% over the past 24 hours to trade at $1,988.35. During the same period, Bitcoin (BTC) also dropped about 4%, while the total cryptocurrency market capitalization fell roughly 3.3% to $2.34 trillion. Amid the broad market downturn, ETH faced selling pressure as it continued to show a high correlation with Bitcoin’s price movement.
Market sentiment indicators also reflect a bearish mood. The Fear & Greed Index remains at 20, firmly in the “Fear” zone, signaling that investors are reducing their exposure to risk assets. Analysts note that in such an environment, macro-level market trends tend to have a stronger influence on prices than individual asset fundamentals.
In the derivatives market, leveraged positions were unwound simultaneously. Over the past 24 hours, open interest in cryptocurrency derivatives decreased by about 15.09%, while Bitcoin liquidations surged approximately 71.46% to around $157.24 million. As excessive leveraged long positions were forcibly liquidated, selling pressure intensified, accelerating ETH’s price decline.
From a short-term technical perspective, the $1,950 level is identified as a key support zone. If maintained, ETH may continue moving sideways within a range between $1,950 and $2,050. Conversely, if this support breaks down, the possibility of testing the next major support level at $1,900 could open up.
Looking ahead, the market’s direction is expected to be largely influenced by Bitcoin’s trend. Market participants are closely watching whether BTC can firmly hold the $68,000 level, as this is considered a key variable in determining the short-term trajectory of the broader cryptocurrency market.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses resulting from decisions based on it. The content should be interpreted solely for informational purposes.*