Ethereum Crash Alert: Double-Top Pattern Signals Bigger Crash Ahead?

Ethereum Crash Alert: Is the Bear Market Making a Comeback?

Over the previous day, $240 billion has been lost from the cryptocurrency market, bringing its capitalization down to its lowest level since early November. All of the gains made after the US election have now been erased, causing a 6% decline to $2.6 trillion. The biggest hit has been Ethereum, which dropped from almost $2,140 to just under $1,800 in just 12 hours, a staggering 16%. Additionally, ETH is having trouble rebounding and was trading around $1,898 at the time of writing.

When Ethereum was gradually recovering from a two-year bad market in October 2023, it last dropped below $1,800. After the formation of what looks to be a double-top chart pattern, the asset must be held to strong support at current levels to keep it from plunging down to bear market lows. Analysts have cautioned that ETH may drop as low as $1,200 if support here is lost.

Whales Rushing to Avoid Liquidation?

According to Tradingview, Ethereum is currently down a painful 62% from its peak in 2021, and the ETH/BTC ratio has dropped to 0.023 today, its lowest level since December 2020. According to Lookonchain, it does raise the question of who would be selling Ethereum at $2,000, and the answer seems to be whales attempting to evade liquidation.

Pectra testing issues and an unidentified attacker making zero-token transfers, which resulted in empty blocks, have added to the ETH stress. However, Marius van der Wijden, an Ethereum engineer, said that the problem had been resolved on March 9.

We suspected that the attacker was reading some of our chats, so we decided not to publicize the fix, but only update a few nodes that we controlled in order to get more full blocks on the network,

van der Wijden

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