Analysis: Ethereum’s nearly 20% plunge breaks bull trendline from 2022 Terra crash

Odaily News Ethereum’s price plunged nearly 20% in the seven days to March 9, posting its biggest weekly percentage drop since November 2022, according to TradingView data. The sell-off broke a bull trendline that began in June 2022 after the Terra algorithmic stablecoin UST crash, which resulted in billions of investor wealth losses. The decisive drop means that Ethereum’s nearly three-year bull trend may have ended, and the focus turns to deeper losses, possibly falling to support near the September-October 2023 low, around $1,500. Trendlines help visualize the direction of trader funds and where prices may change. An ascending or bull trendline represents a level where demand is expected to be sufficient to avoid further price declines. When a long-term bullish trendline is broken, as in the case of ETH, it indicates weakening demand, indicating a possible bearish shift in market trend. Breaking through a trendline often prompts other traders to sell, resulting in greater losses. (CoinDesk)