Ethereum Tumbles to $2,800, Targeting $2,500: Corporate Losses and Bearish Fractals Mount
Ethereum's price has dropped sharply, going below the psychologically important $3,000 mark to trade around $2,800. This is a huge 7% drop
Quick overview
- Ethereum's price has dropped below $3,000, currently trading around $2,800, marking a 7% decline in 24 hours and a 30% drop over the past month.
- Institutional investors and Ether treasury companies are facing significant unrealized losses, with some losing between 25% and 48% of their holdings' value.
- Technical analysis indicates a bearish trend for Ethereum, with potential further declines towards the $2,500 support level, as selling pressure remains strong.
- The market is experiencing reduced institutional demand, highlighted by significant outflows from US spot Ether ETFs and a negative fractal pattern emerging.
Ethereum’s price ETH/USD has dropped sharply, going below the psychologically important $3,000 mark to trade around $2,800. This is a huge 7% drop in only 24 hours and a 30% reduction over the past month. On Thursday, the second-largest cryptocurrency fell to its lowest point in four months, $2,770. This wiped out a year’s worth of profits and left institutional investors with huge unrealized losses.
Ethereum Treasury Companies Drowning in Red Ink
The decline has been terrible for Ether treasury companies, and the top 10 digital asset treasury (DAT) corporations now have millions of dollars in paper losses. According to Capriole Investments, big ETH holdings have lost between 25% and 48% of their value.
BitMine Immersion Technologies, which owns a huge 3.56 million ETH (2.94% of the circulating supply), has been hit especially hard. The corporation has lost $1,000 for every ETH it bought, which adds up to a huge $3.7 billion in unrealized losses. BitMine has lost 28% of its value in the last seven days and 45% of its value in the last 30 days.
Other big players, like SharpLink, The Ether Machine, and Galaxy Digital, are losing value fast, with prices dropping 50% to 80% from their yearly highs. The market value to net asset value (mNAV) ratio for most treasury businesses has dropped below 1, which means they can’t raise as much money and investors are losing faith.
Adding to the negative mood, the total amount of ETH held in strategic reserves and ETFs has dropped by 280,414 ETH since November 11. US spot Ether ETFs saw their biggest weekly outflows since February, which is another sign that demand from institutions is getting worse.
Bearish 2022 Fractal Pattern Emerges as Warning Signal
Technical analysis does not look well for Ethereum bulls. The cryptocurrency is currently following a negative fractal pattern that was last seen in 2022, just before a big drop in price. ETH has already lost 41% from its all-time high of $4,955 in August, and it looks like it may tumble even more.
The 200-week simple moving average is at $2,450, which is the last major line of defense for bulls. Based on what has happened in the past, this level could be challenged because similar fractal arrangements in 2022 and March 2025 resulted to drops of 82% and 66%, respectively.
Ethereum’s super trend indicator has given a “sell” signal on the weekly chart, which is a technical event that has happened before big corrections. This adds to the bearish momentum. If this pattern maintains, ETH may realistically drop to about $2,500 or even test the $2,450 support zone.
ETH/USD Short-Term Price Action Shows Limited Recovery Potential
Ethereum is clearly trading below both the $3,000 mark and the 100-hourly simple moving average on shorter timeframes, which shows that bears are in charge. Both the hourly MACD indicator and the RSI have dipped below the neutral 50 mark, which means that selling pressure is still strong.
There is immediate resistance at $2,920 for any attempts to rebound, and there are bigger hurdles at $2,950 and $3,050. A crucial negative trend line has developed, and resistance is coming together at the $3,050 level. This makes it very unlikely that there will be a sustained breakout in the foreseeable future.
If Ethereum can’t get back to these levels, it will find support at $2,770, $2,740, and $2,680. If it breaks below these levels, it would be able to reach the important $2,500-$2,550 support zone, which is in line with the bearish fractal projection.
Ethereum Price Prediction: $2,500 Target Looms Large
Ethereum looks like it could go down more since bearish technical indications are coming together, institutional demand is falling, and treasury businesses are losing more money. The most likely short-term target is $2,500, which is close to the 200-week moving average of $2,450.
If the price goes back up to the $3,050-$3,120 zone, this negative view will be proven wrong and it might lead to a recovery toward $3,250. till then, traders should get ready for more volatility and possible tests of important support levels that could affect the direction of Ethereum’s price till the end of the year.
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