On Tuesday, Ethereum (ETH) retested the $2,000 support zone, falling below this level for the first time in over a year. Some analysts suggested the second-largest crypto risks a 40% correction as its price attempts to hold its support level \u201cbetween heaven and hell.\u201d<\/p>\n
Ethereum has fallen<\/a> to a yearly low of $1,993, according to Binance market data. The cryptocurrency has dropped below $2,000 for the first time in 15 months, hitting its lowest price since late November 2023.<\/p>\n Amid the February market retraces, ETH failed to hold the $3,000 level, hovering between the $2,500 and $2,8\u201900 price range for most of the month, despite the February 3 market crash to $2,100.<\/p>\n However, the end-of-month correction saw Ethereum bleed 17% to a new low of $2,076. Per Coinglass Data<\/a>, the King of Altcoins closed last month with a 31.95% decline, registering its first February Close with red numbers since 2018.<\/p>\n ETH recovered 17% on Sunday, attempting to reclaim the $2,500 resistance level after US President Donald Trump announced<\/a> the establishment of a \u201cCrypto Strategic Reserve,\u201d which will have Bitcoin and Ethereum \u201cat the heart\u201d of it.<\/p>\n On Monday, ETH fell below the $2,000 mark during the market\u2019s dump and risks dropping another 40%. Ali Martinez highlighted<\/a> that Ethereum could fall as low as $1,250 if it doesn\u2019t reclaim some key levels.<\/p>\n The analyst noted that Ethereum has been consolidating in a parallel channel since 2024, bouncing from the channel\u2019s upper boundary to the middle or lower boundary before bouncing back to the upper zone.<\/p>\n Nonetheless, ETH broke below the channel\u2019s lower boundary after dipping below $2,200 last week. If the cryptocurrency doesn\u2019t reclaim the channel\u2019s lower boundary, its price could retrace to the $1,600 or even $1,250 support zones.<\/p>\n Martinez noted that Ethereum\u2019s most critical resistance barrier is at the $2,400 mark, where over 2.41 million investors bought 62,68 million ETH. To the analyst, a breakout above this level could \u201cclear the path for a rally toward $3,000.\u201d<\/p>\n As Ethereum retested<\/a> the barrier \u201cbetween heaven and hell,\u201d some market watchers pointed out that ETH\u2019s recent performance resembles its 2018 and 2022 price action.<\/p>\n According to the pseudonym trader 5.0 Inverted, the king of altcoins is \u201cfollowing 2018 and 2022 bear market price action.\u201d The chart shows<\/a> that ETH steadily declined throughout those years, retracing 82,71% and 68.29% in 2018 and 2022, respectively.<\/p>\n The cryptocurrency saw small price rallies in the first six months of both years but continued the downtrend. ETH has declined<\/a> 36.4% year-to-date (YTD), showing a similar performance to the mentioned years.<\/p>\nETH Following Bear Market Years\u2019 Playbook?<\/h2>\n