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Here’s why Ethereum price may hit $1,500 first before $2,500

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ethereum price

Ethereum price was stuck below the important support of $2,000 today, February 16, as it erased the gains made during the weekend.

Summary

  • Ethereum price may be at risk of falling to the key support at $1,500.
  • It has formed a bearish pennant pattern on the daily timeframe chart.
  • The bearish catalysts have outweighed the bullish one.

Ethereum (ETH) token was trading at $1,980, down substantially from its all-time high of $4,960. Technical analysis suggests the coin will likely drop to the key support at $1,500 before hitting the psychological $2,500 level.

Ethereum price technical analysis suggests a retreat to $1,500 is likely

The daily timeframe chart shows that ETH price remains in a technical bear market after falling by 60% from its all-time high. It is slowly forming a bearish pennant pattern, consisting of a vertical line and a symmetrical triangle. 

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It has completed forming the flagpole line and is now in the triangle section, whose two lines are about to converge. In most cases, a bearish breakout normally happens when these two lines are about to meet. 

ETH price has remained below all moving averages and the 78.6% Fibonacci Retracement level. It has also moved below the strong pivot, reverse level of the Murrey Math Lines. 

Therefore, the most likely ETH price prediction is bearish, with the initial target at the psychological $1,500 level, a few points above its lowest level in April last year. 

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ethereum price
ETH price chart | Source: crypto.news

The bearish outlook is also supported by a Polymarket poll, which places the odds of it falling to $1,500 this year at 72%.

ETH price to drop as demand wanes

The main reason why ETH price may crash to $1,500 first is that demand has remained thin in the past few months. A good example of the waning demand is the ongoing happenings in the futures market, where open interest has dropped to $23 billion, its lowest level since 2024. It has crashed from last year’s high of nearly $70 billion.

Spot Ethereum ETF outflows have continued this month. These funds have shed over $326 million in assets this month, the fourth consecutive month in the red. They have lost over $2 billion in assets in the last four months.

These bearish catalysts have outweighed the positive Ethereum news. For example, the staking queue has jumped to a record high, with the staking ratio hitting the key milestone of 30%. 

The supply of ETH on exchanges has dropped to a record low, while transactions, fees, and active addresses have soared. Ethereum has also become the most preferred chain for the booming real-world asset tokenization industry. 

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Crypto World

Bitcoin Reaches Highest Level Of Bearish Chatter In 5 Weeks

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Bitcoin Reaches Highest Level Of Bearish Chatter In 5 Weeks

Social media bearishness around Bitcoin has reached its highest level since the end of February, according to crypto sentiment platform Santiment.

“FUD has crept back in with the community showing a key lack of optimism,” Santiment said in an X post on Saturday, adding that it is “usually a common ingredient for prices rebounding.” 

The data comes from a large sample of crypto-focused social media accounts and tracks the ratio of bullish to bearish Bitcoin (BTC) comments across X, Reddit, and other social media platforms.

Markets move in “opposite direction,” says Santiment

On Saturday, the ratio of bullish to bearish Bitcoin comments stood at 0.81, the lowest level since Feb. 28.

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Santiment data shows there are approximately 5 bearish comments for every 4 bullish comments. Source: Santiment

Bitcoin holders often look at broader market sentiment to guide buying and selling decisions. When sentiment is low, most expect more downside, and when optimism picks up, traders start to expect further upside.

However, Santiment said the market often moves in the opposite way. “Markets typically move in the opposite direction of the crowd’s expectations,” Santiment said. “A high level of FUD like this is a good sign that things can turn positive sooner rather than later,” Santiment added.

Bitcoin is trading at $67,100 at the time of publication, down 5.53% over the past 30 days, according to CoinMarketCap.

Bitcoin is down 5.47% over the past 30 days. Source: CoinMarketCap

Santiment pointed to the US CLARITY Act, which is a highly anticipated piece of legislation that the crypto industry is watching closely, as a potential “what-if” catalyst holding back Bitcoin’s price. 

Crypto market sentiment stays in “Extreme Fear”

On Wednesday, Coinbase chief legal officer Paul Grewal said the legislation is “moving toward” a markup hearing in the US Senate Banking Committee and could eventually move to a floor vote if senators resolve the stablecoin yield dispute and schedule a markup.

Related: Rich Bitcoin traders lost $337M daily in first quarter of 2026

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Other indicators suggest that investors are taking a cautious approach to the crypto market.

The Crypto Fear & Greed Index, which measures overall crypto market sentiment, has stayed within “Extreme Fear” territory, posting a score of 12 on Sunday.

Magazine: Bitcoin 85% crashes ‘done,’ CLARITY Act speculation mounts: Hodler’s Digest, Mar. 29 – April 4