Could Ethereum Price Plunge Below $2,000 Mark?
Although ETH recently bounced back to the $3,000 level, analysis indicates the cryptocurrency might face a substantial pullback toward $1,850 should critical support zones fail to maintain.
Throughout the past 24 hours, Ether (ETH) has recorded moderate price increases, temporarily recovering the psychologically significant $3,000 threshold. Nevertheless, diminishing interest in ETH, demonstrated through substantial withdrawals from spot Ethereum exchange-traded funds (ETFs), combined with deteriorating technical indicators, might result in Ether falling beneath the $2,000 mark within the next several weeks.
Key takeaways:
- Weakening demand for Ethereum and negative flows in spot Ether ETFs indicate aggressive selling pressure.
- A bear flag formation on Ether's chart points to a potential $1,850 price target should crucial support break down.
Ethereum's visible demand reaches 10-month low points
A specific indicator measuring Ethereum demand has experienced a significant decline since the middle of December, reaching levels not observed since March 2025.
The Ethereum Apparent Demand metric from Capriole Investment plummeted dramatically to -3,562 ETH on Jan. 16, down from more than 92,000 ETH recorded on Dec. 13. At the time of publication on Thursday, this indicator had recovered marginally to 665 ETH.
The combination of declining ETH demand during a price pullback suggests forceful distribution activity as the cryptocurrency tests crucial support thresholds, especially the psychologically important $3,000 level witnessed this week.
It's worth noting that when demand last reached these depressed levels in March 2025, the price was trading in the vicinity of $2,200. Subsequently, ETH experienced a sharp 25% price decline to $1,750 just days afterward.
Critical support for ETH price sits at $2,800
According to previous Cointelegraph coverage, the crucial support zone for Ether remains within the $2,800-$3,000 demand area. Within this range, market participants have accumulated approximately 9 million ETH throughout the previous six months, establishing a potentially strong support foundation, based on Ether's cost basis distribution analysis.
After examining the order book heatmap, pseudonymous market analyst Kriptoholder identified significant whale buying activity concentrated around this same price level.
The analyst noted in a Wednesday X post that the "support block in the $2,800 - $2,850 range and the dense buy walls within the $2,500 - $2,600 band clarify where demand is clustered," Kriptoholder said, adding:
"This structure indicates exactly where institutional buyers are positioned to absorb pullbacks and target accumulation."
This price zone aligns with the 50-week moving average indicator and represents the lower boundary of a bear flag technical pattern, as illustrated in the accompanying chart.
According to cryptocurrency investor Batman's most recent X post, ETH price is "currently nearing its last line of defense, the support level that has held price for the past 3 months," referencing the $2,800-$3,000 demand zone.
"If there's an area for Ethereum to rebound, this is it. If not, it's going to look bad."
Should that support fail, the next important downside levels to monitor include the 200-day MA positioned at $2,460 and the psychologically significant $2,000 threshold.
The technical measured objective derived from the bear flag pattern projects a potential bottom at $1,850, representing where ETH might find support in the event of a prolonged bearish trend.
According to earlier Cointelegraph analysis, Ether has the potential to prevent this breakdown scenario provided it maintains trading above $3,000, with support coming from encouraging network fundamentals and unprecedented staking participation.