Key Highlights:

• Ether (ETH) prices dropped nearly 20% in the week leading to March 9, registering their largest weekly decline since November 2022.
• This plunge broke a bullish trendline established in June 2022, potentially marking an end to a nearly three-year upward trend and suggesting further losses.

Prices of Ether, the cryptocurrency native to the Ethereum blockchain, saw a significant slide of almost 20% within a week, marking the most substantial weekly percentage decline since November 2022, according to TradingView data. The recent sell-off has pierced through a bullish trendline that originated from the lows recorded after the June 2022 crash of Terra’s algorithmic stablecoin, UST, which had a devastating impact on investor wealth.

The breaking of this trendline suggests a possible end to Ether’s long-standing upward trend, shifting investors’ concerns towards deeper losses, particularly as it approaches previously identified support levels around $1,500 seen in September-October 2023.

Trendlines illustrate the allocation of trader funds and potential price movement areas. A bullish trendline indicates expected price support. When a bullish trendline is breached, it speaks to diminishing demand, suggesting sellers may be in control, leading to subsequent selling activity and deeper declines.

Ether’s significant 20% fall has compromised crucial support levels, including the trendline and an area around $2,100, which has experienced ongoing seller activity since August. The next critical support level is anticipated at $1,500, whereas last week’s peak of $2,523 now stands as a challenge for bullish traders.