Ethereum News: Ethereum Crashes to 16-Month Low, Analyst Predicts Further Decline to $1,200

Ethereum Tanks to 16-Month Low, Analyst Predicts Plunge to $1,200

Crypto markets have experienced a significant decline, losing over 12% or nearly $400 billion since the Sunday peak. Ethereum (ETH) has been one of the largest losers, crashing to its lowest levels in 16 months, down 15% to $2,035 during early Asian trading on Tuesday morning. This marks a return to bear market levels for ETH, which has dumped 50% since hitting $4,000 in early December 2024. Analyst ‘Nebraskangooner’ has predicted a further decline to $1,200, citing a double-top formation on the monthly timeframe chart.

ETH Dives to $2K – Lowest Since November

Ethereum’s price plunged 15% to $2,000, its lowest level since November. The drop was driven by whale-led sell-offs, erasing all post-election gains. Despite Ethereum’s inclusion in strategic reserves, which was anticipated to boost prices, it failed to halt the outflows. ETH ETFs lost $51.36 million. With high sell-side liquidity and extreme fear in the market, a further drop to $1,900 is increasingly likely if bulls fail to defend key levels.

Bybit Hacker Launders $1.4B Loot in 10 Days

The hacker behind the $1.39 billion Bybit exploit successfully laundered all the 499,000 ETH stolen in just ten days by leveraging decentralized finance (DeFi) protocols. Despite blockchain analytics firms, law enforcement agencies, and crypto exchanges closely monitoring the movement of the stolen funds, the attacker managed to clean them fully. On-chain analytics platform EmberCN started tracking the funds soon after they were stolen and revealed that the hacker had laundered significant amounts of ETH within short periods.

Ethereum Breaks Below Parallel Channel – Potential for Further Correction

Ethereum has experienced a significant drop, reaching its lowest level since late November 2023. The market has been hit by extreme volatility and uncertainty, with ETH losing over 20% of its value in just hours. Analysts are closely monitoring Ethereum’s price action, as the next few days could determine the short-term outlook. Top analyst Ali Martinez suggested that Ethereum is on the verge of breaking out of a parallel channel to the downside. If ETH falls below the $2,000 mark, it could be set for a deeper correction before any recovery attempts.