#Recent Crypto Market Insights  Ethereum Drops to December 2023 Lows: Bears Take It Below $2,000

The price of Ethereum has fallen another 13% in the past week. On Monday morning during Asian hours, the leading altcoin fell to $1,997, its lowest level since December 2023.
With the increasing bearish trend, the cryptocurrency could soon fall below the critical $2,000 support level again.
ETH Selling Increases: 50% of Traders Are in Loss
A chart review of ETH/USD reveals that the altcoin has been trading well below the Ichimoku Cloud since January 25.
Leading Spans A (green) and B (red) are forming dynamic resistance above the altcoin’s price at $2,346 and $2,742, respectively.
It tracks the momentum of an asset’s market trends and identifies potential support/resistance levels. When the price is trading above this cloud, the market is in an uptrend.
Conversely, when the price of an asset falls below the cloud, the market is in a downtrend. In this scenario, the cloud acts as a dynamic resistance zone above the price of ETH. As long as the price of the coin remains below it, it increases the likelihood of a further downtrend.
Furthermore, the falling prices of ETH have caused losses for many investors. The percentage of ETH wallet addresses whose average purchase price of their funds is lower than the current price of the coin has fallen to 50%, a year-low.
This means that only 50% of all addresses holding ETH are in profit. At the beginning of the year, this figure was 82%. This trend could fuel sell-offs among ETH traders, as many are now looking to sell off their assets to minimize their losses.
If the sell-off intensifies, it could push ETH’s price even lower, reinforcing the downtrend and potentially triggering more stop-loss sell-offs.
How Much Will Ethereum Be?
ETH’s $2,000 support may not hold if the selling pressure continues. This could open the door to more losses in the coming days. Fibonacci Retracement Tool readings suggest that the coin could drop to $1,924 if demand weakens further.
However, a positive shift in market sentiment could invalidate this bearish prediction. If ETH sees a revival in new demand, it could push its price to $2,224. If the coin turns this resistance into a support base, it could push ETH’s price towards the highly coveted $2,500 region.