Ethereum price plunges below $2,000: is a brutal fall to $1,700 next?
Ethereum (ETH) has dropped below the psychological $2,000 level on Friday as a sharp decline in artificial intelligence-related stocks triggered renewed selling across cryptocurrency markets. The second-largest cryptocurrency lost approximately 6% over the last 24 hours and now trades around $1,932. The massive dip coincided with reports of Nvidia CEO Jensen Huang's resignation, which unsettled investors and sparked declines across several AI infrastructure companies. The broader cryptocurrency market also came under pressure, with total market capitalization falling approximately 5.4% over 24 hours. Nvidia leadership shake-up weighs on Ethereum Ethereum's latest decline coincided with renewed volatility across US technology stocks following reports of Nvidia CEO Jensen Huang's resignation. The leadership development followed allegations concerning Huang's personal relationships and national security-related concerns. The reports unsettled investors, triggering sharp declines across several companies associated with artificial intelligence infrastructure. In recent months, digital assets have frequently moved alongside technology stocks as both markets respond to changes in investor sentiment and broader financial conditions. Ethereum has been particularly sensitive to these shifts, with the latest decline pushing its price below $2,000. The global cryptocurrency market capitalization fell approximately 5.4% over the past 24 hours, indicating the extent of the broader market correction. Ethereum's decline triggered substantial liquidations in the derivatives market, particularly among traders betting on higher prices. According to CoinGlass, approximately $285.4 million in ETH positions were liquidated over the past 24 hours. Long positions accounted for $258 million of the total, suggesting that bullish traders suffered the largest losses during the sell-off. Ethereum ETFs record $144.8 million in outflows Institutional demand for Ethereum continues to deteriorate, adding another obstacle to the cryptocurrency's recovery. According to SoSoValue , US spot Ethereum ETFs recorded $144.8 million in net outflows on Wednesday, followed by another $8 million on Thursday. The withdrawals extend a period of weak demand, with the investment products recording only one day of positive net flows since the beginning of November. Persistent ETF outflows suggest that investors are reducing their exposure to Ethereum through regulated investment vehicles. Sustained withdrawals can therefore weaken sentiment and contribute to selling pressure in the underlying market. Ethereum price forecast: ETH drops below the critical $1,971 support Ethereum's technical outlook remains bearish following its decline below $2,000. At the time of writing, ETH trades around $1,932, maintaining a bearish bias as it remains below its major daily Exponential Moving Averages (EMAs). The 20-day EMA stands near $2,227, while the 100-day EMA is positioned around $2,320. Meanwhile, the 50-day EMA sits at approximately $2,334, creating another significant resistance barrier above the current market price. Trading below these moving averages suggests that sellers remain in control of the short- and medium-term trend. The concentration of resistance between $2,227 and $2,334 also indicates that recovery attempts could encounter substantial selling pressure. Momentum indicators reinforce the bearish outlook. The 14-day Relative Strength Index (RSI) has fallen to approximately 24, placing Ethereum in oversold territory. Meanwhile, the Stochastic Oscillator stands near 8, reflecting extremely weak short-term momentum. Ethereum has dropped below the crucial support at $1,971. With the daily candle closed below this support, sellers are looking to push Ethereum towards lower demand zones in the near term. The next significant support stands around $1,827, followed by another horizontal level near $1,706. These levels could attract buying interest if Ethereum's decline continues. ETH/USD Daily Chart Despite the prevailing bearish conditions, Ethereum's deeply oversold momentum indicators suggest that a temporary recovery remains possible. The first important resistance stands at $2,101. A sustained recovery above this level would suggest that buyers are beginning to regain some control. Beyond $2,101, the next significant resistance stands at $2,204. A breakout above this barrier could encourage buyers to target the 20-day EMA near $2,227, followed by the horizontal resistance around $2,250. Further resistance stands at the 100-day EMA near $2,320 and the 50-day EMA around $2,334. Reclaiming these moving averages would improve Ethereum's technical structure and provide stronger evidence of a sustained recovery. AI disclosure: AI tools assisted with research and drafting of this piece. An Invezz editor reviewed the facts, sources and wording before publication. Any opinions or analysis are Invezz’s, not those of an automated system. The post Ethereum price plunges below $2,000: is a brutal fall to $1,700 next? appeared first on Invezz