Ethereum has been experiencing a dramatic crash over the last few days, breaking below several significant support levels. Investors are now wondering when this downtrend will end.
Technical Analysis
By Edris Derakhshi (TradingRage)
The Daily Chart
On the daily chart, Ethereum has seen a rapid decline since breaking below the 200-day moving average, which is located around the $2,900 mark. The $2,700 and $2,350 levels have also been breached, and the price is currently testing the critical $2,100 support zone. Should this level also break, we could anticipate a further decline toward the $1,750 level in the coming months. 
The 4-Hour Chart
Analyzing the 4-hour chart, things appear dire for Ethereum, as the asset has consistently made lower highs and lows over the past couple of months. Currently, the $2,100 support level is keeping the price afloat. A temporary recovery could be possible if Ethereum breaks above the $2,400 mark. However, losing the $2,100 area could result in a more significant drop. 
Sentiment Analysis
By Edris Derakhshi (TradingRage)
Open Interest
Many analysts and investors attribute Ethereum’s sharp decline to the futures market. However, an analysis of the open interest metric suggests that this might not be the case this time. The open interest metric measures the number of open futures contracts, and despite the significant drop in price, the open interest has not declined sufficiently and continues to lag behind. This indicates that the recent price action does not solely arise from long liquidation cascades, with most selling pressure emerging from the spot market. Moreover, this situation warns investors that matters could worsen if a larger liquidation event were to occur. 
The analysis indicates significant volatility ahead for Ethereum, and vigilance is required as market conditions unfold.
