Ethereum (ETH) Price Plunges Below $1,600, What's Next?

Ethereum (ETH), along with Bitcoin and other altcoins, has been caught in the recent wave of market pressure, plunging below the critical $1,600 mark

The crypto market has seen better days. Major cryptocurrency Ethereum (ETH) has slipped below the crucial $1,600 level following a sharp 15% drop, sparking panic among investors.

What Happened: Recent market pressure has pushed ETH below the key $1,600 zone. This move follows a 15% decline from the recent highs above $1,870, which was a key Fibonacci level, and signals a bearish trend.

As ETH continues to fall, the next major support zone to watch is placed between $1,520 and $1,540. This level has been tested on several occasions in early and late 2023 and has so far held.

If ETH fails to recover above the $1,520–$1,540 zone, then the next major downside target could be around $1,400.

Why Is ETH Dropping?

Fresh macroeconomic concerns have pushed both traditional and crypto markets lower. Trade tensions are heating up again following President Donald Trump’s latest comments on tariffs.

Trump said on Monday that he plans to impose tariffs on another $7.5 billion worth of goods from China as early as next week in response to new tariffs announced by Beijing on U.S. agricultural products.

The administration also announced on Friday that it will begin a process that could lead to the imposition of tariffs on up to $42.5 billion in additional goods from China in response to what it claims are unfair trade practices by the Chinese government.

The U.S. president’s comments come amid unexpected geopolitical developments, including the removal of the Spanish government by the king and the ongoing unrest in Hong Kong.

Relative Strength Index Is Now Oversold

The RSI on the 4-hour chart has now moved into oversold territory. While this could indicate that a short-term bounce is possible, it doesn’t necessarily mean that the bear market has bottomed.

For example, in March, despite the RSI being oversold, ETH experienced a brief recovery before continuing to decline.

Only one more level is left to be breached. If the bears succeed in pushing ETH below the $1,520-$1,540 zone, then the next major downside target could be seen at the $1,400 mark.

ETH Whale Faced $106 Million Liquidation On Maker

In other news, an Ethereum whale faced a staggering $106 million liquidation on Maker over the weekend. The liquidation involved 67,570 ETH, which was part of a larger holding that was used to mint 68,000 MKR tokens.

The liquidation occurred as ETH plummeted, wiping out gains that were booked during the recent bull market.

One investor panicked and sold 14,014 ETH in a single evening as the crypto market saw a massive sell-off on Monday. The move was noted by blockchain data firm Lookonchain.

The 14,014 ETH, which is valued at about $22 million, was sold by an investor known as "0x4708." The tokens were sold in batches at varying prices, ranging from $1,546 to $1,563 per token.

The sell-off comes amid broader market weakness, which was triggered by fresh macroeconomic concerns.