Ethereum (ETH) is struggling to maintain support above $1,800 as regulatory uncertainty weighs heavily on its price, with a notable shift in investor sentiment towards Bitcoin (BTC), which recently surged back to $84,000. On-chain data reveals a looming risk for over 8.73 million ETH addresses, as a dip below $1,600 could trigger significant losses and further downward pressure.
Why is Ethereum Price Declining?
Ethereum’s price decline is largely driven by regulatory uncertainty in the U.S. The nomination of Paul Atkins for SEC chair, initially seen as a positive move for crypto, has faced resistance in Congress, causing doubts about the continuation of pro-crypto policies. Specifically, Trump’s proposed inclusion of Ethereum in the Crypto Strategic Reserve could be delayed or rejected, adding to investor anxiety.
As a result, Ethereum has lost its appeal for many traders, who are pivoting to Bitcoin, which is perceived as a safer asset amidst the regulatory volatility. Ethereum’s spot market liquidity has also dropped by 26% in the last 24 hours, signaling weak buying support at current price levels.
On-Chain Data: 8.73 Million Addresses at Risk
On-chain data from IntoTheBlock highlights a concerning trend. Approximately 8.73 million Ethereum addresses hold a combined 3.61 million ETH in the price range between $1,596 and $1,790. If ETH dips below $1,600, these addresses could slip into losses, potentially triggering a wave of sell-offs. This data suggests that a drop below $1,600 could push Ethereum further into a downtrend, as investors seek to mitigate their losses.
ETH Price Outlook: Breakdown Below $1,750 at Risk
As of now, ETH is struggling to hold above $1,808.82, and technical indicators are showing signs of further downside. The ADX breakout at $2,212 has proven to be a significant resistance level, and Ethereum’s inability to reclaim this zone suggests that bullish momentum is lacking.
The MACD indicator is also pointing to continued bearish pressure. With the MACD line at -98.38 below the signal line at -105.99, and declining histogram bars indicating ongoing selling pressure, the market remains firmly in a downtrend.
If Ethereum fails to reclaim the $1,850 level and turn it into support, the risk of a further breakdown below $1,754 increases. Such a move would likely trigger a cascade of liquidations, pushing ETH towards the critical $1,600 support level. This would put the 12.3 million addresses at significant risk of falling into losses, further exacerbating the bearish sentiment.
Key Risk Factors
The major risk factor remains the regulatory uncertainty surrounding the SEC chair nomination and its potential impact on Ethereum’s future. The outcome of this political development will play a crucial role in determining whether Ethereum can recover or if further downside is likely.
Conclusion
Ethereum’s price remains under pressure as investor sentiment shifts towards Bitcoin, and regulatory concerns continue to loom large. With millions of addresses at risk if ETH falls below $1,600, traders should closely monitor for any regulatory clarity or price recovery signals. If ETH fails to regain $1,850, a potential drop to $1,600 could open the door for further sell-offs, leading to increased losses for many Ethereum holders.
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