Ethereum (ETH) continues its downward trend, dropping over 9% in just 24 hours and hitting an eight-month low of $1,934. This decline signals a significant breach below the psychological $2,000 mark, raising concerns among analysts about ETH's short-term prospects. The cryptocurrency has seen a steep decline of over 60% since its all-time high of $4,956 in August. With the market correction ongoing, Ethereum's price action is causing alarm for investors and traders alike.

As ETH struggles to maintain its value, some analysts are closely watching critical price levels. Market observer Daan Crypto Trades expressed concerns about the overall price action, noting that Ethereum's chart shows clear horizontal levels that traders should monitor. If ETH fails to reclaim the $2,000-$2,100 range soon, it may retest the $1,800 area, a key breakout level from earlier bullish trends.

The sentiment around Ethereum is grim, especially after it lost the 200-Week Exponential Moving Average (EMA). Analysts suggest that if ETH cannot hold above $2,000, it could plunge further, possibly reaching the April 2025 lows around $1,400-$1,500. This situation echoes the precarious position of Bitcoin (BTC), which is also facing critical support challenges.

Ethereum's current struggles have led to notable liquidations among investors. Reports indicate that BitMine, the second-largest crypto treasury, has suffered substantial unrealized losses, now totaling over $8 billion. Despite the downturn, Tom Lee, BitMine's chairman, remains optimistic about Ethereum's fundamentals, arguing that the current price does not reflect its true utility and potential in the finance sector.

The recent market dynamics have also negatively impacted Ethereum exchange-traded funds (ETFs), which saw a loss of nearly $80 million in one day, adding to a total net outflow of $68 million in the early part of the week. In the last 24 hours alone, Ethereum liquidations reached a staggering $326.6 million, with significant losses from long positions contributing to market volatility.

As Ethereum navigates this turbulent period, the crypto community will be watching closely to see if it can stabilize above the critical support levels or if it will continue its downward trajectory. The next few days will be crucial for assessing whether Ethereum can reclaim its footing or if further declines are inevitable.