The price of Ethereum is facing renewed pressure after a bearish technical signal appeared on its daily chart.
According to market data, Ethereum briefly dropped about 12% on Monday, hitting an intraday low near $1,930 before recovering slightly. At the time of writing, the cryptocurrency was trading close to $2,000.
Over the past few days, Ethereum has been moving in a narrow range between $1,900 and $2,000. Traders are watching the lower end of this range closely as global market uncertainty increases.
The latest decline came after Bitcoin slipped toward $65,000, which triggered broader selling across the crypto market.
Rising geopolitical tensions in the Middle East also affected investor sentiment. Oil prices climbed above $100 per barrel amid fears of disruptions near the Strait of Hormuz, pushing some investors away from riskier assets like cryptocurrencies.
The drop in Ethereum’s price triggered heavy liquidations in the derivatives market. Data from CoinGlass shows nearly $75 million worth of Ethereum futures positions were liquidated in the past 24 hours, mostly from long traders.
Technical indicators also suggest downside pressure could continue. On the daily chart, Ethereum’s 20-day moving average has crossed below its 50-day simple moving average, forming what traders call a bearish crossover.
If the selling pressure continues, analysts say Ethereum could fall below $1,900 and potentially test support near $1,800. However, if the price climbs back above the 50-day moving average near $2,248, it could signal a shift in momentum.
