Ethereum News: Price Drops Below Key Trendline, Sparking Fears of Prolonged Correction

Recent developments in the Ethereum market have caused concern among investors and analysts alike, as the cryptocurrency’s price has taken a significant downturn. Here’s a closer look at what’s happening and what it could mean for the future of ETH.

Ethereum Drops Below Multi-Year Trendline, Sparks Fears of Deeper Correction

Ethereum’s price has dropped below a key trendline, leading to speculation of a broader downturn. The recent announcement by U.S. President Donald Trump about a national crypto reserve, which initially excluded ETH, has added uncertainty to the market. Technical analysts are debating whether Ethereum has broken below a multi-year ascending triangle, which could indicate a prolonged correction if confirmed. With ETH struggling to maintain support levels, the uncertainty surrounding its role in U.S. policy adds another layer of volatility to the cryptocurrency.

ETH Price Drops Despite Trump and Ethereum Foundation News

Ethereum’s price initially rallied 15% to $2,550 after Trump’s endorsement of ETH for a proposed US Crypto Strategic Reserve. However, the Ethereum Foundation’s announcement of a leadership reshuffle, which initially boosted sentiment, failed to sustain the upward momentum. Short-term traders sold the news, causing ETH’s price to tumble 16% to $2,100 on Monday. With $1.8 billion in short positions, ETH bears regained 55% dominance as traders locked in profits, halting the rally at $2,500.

Ethereum Price Crashes to $2,000—Is More Downside Ahead?

Ethereum price started a fresh decline from the $2,550 zone and is now trading below $2,200. The price failed to clear the $2,550 resistance and gained bearish momentum below the $2,400 and $2,350 support levels. It even dived below the last low and tested the $2,000 mark. ETH is trading below the 100-hourly Simple Moving Average and there is a new bearish trend line forming with resistance at $2,160 on the hourly chart. The pair must clear the $2,160 and $2,250 resistance levels to start a recovery wave.

Lazarus Finishes Laundering Stolen Ethereum, Causing Price Crash

Lazarus, a state-backed North Korean hacking group, has completed laundering all the Ethereum it stole from Bybit. The stolen funds were shuffled through mixers and exchanges, causing Ethereum’s price to crash 23%, from $2,780 to $2,130. Lazarus used THORChain as its primary laundering service, pushing $5.9 billion through the network and making it the single largest laundering operation in crypto history. The platform collected $5.5 million in transaction fees as Lazarus moved the funds. It is unclear if Bybit’s bounty hunt for the stolen funds was successful.