Ethereum Risks Slide to $1,200, Analyst Warns
Ethereum (ETH) is the second-largest crypto asset by market capitalization after Bitcoin, and its price action is often viewed as a key gauge of market risk appetite. An analyst said ETH's recent technical pattern appears to be forming a “bull trap.” Similar signals have previously triggered declines of more than 45%, putting the focus on whether key support can hold.
As of July 20, the analyst warned that a decisive break below support at $1,990 could accelerate selling over the coming weeks and send the price toward the $1,200 region. That would represent a potential decline of nearly 40% from $1,990. This remains a technical-analysis scenario, and whether it materializes depends on a loss of support and subsequent market momentum.
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The history behind this eventEthereum Falls 35% Against Bitcoin in a Year as Technical Analysis Flags Another 40% Drop
Ethereum is the second-largest crypto asset by market capitalization after Bitcoin, and the ETH/BTC ratio is commonly used to gauge investor preference between the two blockchain ecosystems. Ether has depreciated by more than 35% against Bitcoin over the past year, indicating that capital has become more concentrated in Bitcoin and weakening expectations for a period of relative Ethereum strength.
The ETH/BTC ratio recently fell to a nearly 10-month low and remains capped by a long-term descending trendline. Analysts said Binance’s Ether reserves continue to rise, potentially signaling increased selling pressure. If the 2025 bear-market pattern repeats, ETH could initially fall 20% in the short term, while an extreme technical scenario points to a possible further decline of 40%.
Ethereum Risks Falling Below $1,500 as Vitalik Buterin's ETH Sales Raise Concerns
Ether (ETH) is the Ethereum network's native asset, and the market closely watches price movements as well as token holdings linked to the Ethereum Foundation and its co-founder. On January 30, Vitalik Buterin announced plans to withdraw and sell 16,384 ETH through Kanro to fund the ecosystem, open-source software and long-term projects. With risk aversion rising, the potential additional supply has created near-term pressure.
On February 23, ETH fell more than 5.6% to about $1,850 and broke below the lower boundary of a bear flag, pointing to a target of $1,475 between late February and early March. Arkham Intelligence tracking showed that Buterin had sold about 9,000 ETH in several batches since the start of February, leaving roughly 7,350 ETH still to be sold. ETH was down 18.55% in February.
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