What Levels Matter After Monday’s Market Crash

Ethereum (ETH) plunged over 14% in 24 hours Monday, breaking below critical support zones to trade near $1,541 as a broader crypto market sell-off intensified, reportedly taking Bitcoin below $76,000.

What Role Did the $106M Whale Liquidation Play?

Adding pressure to the decline, on-chain data platform Lookonchain reported a major whale liquidation. An address holding 67,570 ETH (worth ~$106 million at the time) on the Maker lending protocol was liquidated, likely amplifying the downward momentum.

Does Exploding Volume Signal Panic or Buying?

Ethereum’s trading volume exploded over 345% during the price drop, with derivatives volume surging similarly (+329%), according to Coinglass. Unlike typical high-volume rallies, this surge alongside a sharp price decline indicates panic selling and aggressive trader repositioning rather than bullish accumulation.

Related: Can Ethereum’s February Consistency Kickstart Altcoin Gains?

Is ETH Testing Long-Term Logarithmic Support?

The price drop pushed ETH below its key $1,800 support level, hitting a daily low of $1,538. Technical resistance now sits significantly higher, near the 20-day Exponential Moving Average (EMA) around $1,854.

Analysis focusing on Ethereum’s long-term trajectory, highlighted by Benjamin Cowen’s popular logarithmic regression channel chart, shows the price now testing the lower bounds of this historical accumulation zone. This critical support area ranges roughly between $1,350 and $1,450. ETH has previously found major cycle bottoms near this lower band.

What’s the Technical Outlook After the Plunge?

A breakdown below this long-term regression support would be technically very significant, potentially signaling a deeper correction towards $1,200 or even $1,000 if macro conditions worsen.

Conversely, the Relative Strength Index (RSI) plunged to an oversold reading near 27.31. While confirming intense selling pressure, such deep oversold levels often precede consolidation or relief bounces.

Related: Crypto Funding Rates Indicate Indecision: BTC, ETH Show No Strong Bias

If Ethereum finds support within the current $1,350-$1,450 regression zone, stabilization followed by an attempt to reclaim $1,800 could occur. Holding the lower regression band is now paramount for bulls.