Market analysts say Ether’s (ETH) price may drop to $1,000 if a breakdown from a bearish chart pattern is confirmed.
Key takeaways:
- Ether’s bear flag targets 50% ETH price drop to $1,075.
- Ether risks over $1.70 billion in long liquidations if the price breaks below $2,000.
- Whale accumulation weakens as major ETH holders reduce exposure.
Ether’s bear flag targets $1,000 ETH price
Ether’s downtrend could accelerate if the price breaks below the lower trend line of a bear flag at $2,000 on the daily chart, where a similar breakdown in January led to a 41.5% ETH price drop.
Related: Ether taker volume turns negative for first time in two months: Will ETH fall under $2K next?
A bear flag pattern is a bearish continuation setup that forms after the price consolidates inside an up-sloping channel following a sharp price drop.
The measured target of the flag, derived from the previous downtrend’s height added to the breakdown point at $2,000, is $1,075, down 49% from the current price.
ETH/USD weekly chart. Source: Cointelegraph/TradingView
“$ETH is about to break the bear flag pattern,” analyst Coin Signals said in a Monday post on X, adding that if the price fails to hold above the lower trend line at 2,000, a “sell-off to $1800 or a new low” would follow.
Fellow analyst Keith Alan told his followers to be “prepared for the nasty scenario,” involving the confirmation of a death cross between the 21-day simple moving average (SMA) and 50-day SMA, and validation of a bear flag in the daily time frame.
“Momentum indicators also show deterioration on both daily and weekly RSI timeframes,” the analyst said in a recent article on X.
“Failure to establish support, however, opens the door to a sequence of progressively lower technical support levels” toward the measured target of the bear flag structure around $1,300, he added.
ETH/USD daily chart. Source: X/Keith Alan
Fellow analyst Crypto Patel said that ETH’s validation of a rising wedge pattern was underway, with a downside target of $1,500.
“Ethereum has lost a key rising trendline. As long as the price stays below it, weakness can continue.”
ETH/USD daily chart. Source: X/Crypto Patel
Meanwhile, Ethereum’s liquidation map shows that a correction below $2,000 would trigger over $1.70 billion worth of leveraged long ETH liquidations across all exchanges, according to CoinGlass data.
ETH exchange liquidation map. Source: CoinGlass
Ethereum whale accumulation drops
Ether’s latest rebound to $2,400 did not trigger broad-based accumulation across major wallet cohorts, Glassnode data showed.
For instance, the number of mega-whale wallets holding more than 10,000 ETH has declined sharply to a 10-month low of 1,050, with the 30-day change dropping to as low as -70, levels last seen in early February.
Ethereum mega-whale address count balance (>10K ETH). Source: Glassnode
In other words, large players are taking advantage of recent liquidity to de-risk, reflecting a lack of mid-term confidence.
The picture looks similar among smaller wallet cohorts.
Ethereum wallets holding 1,000 to 10,000 ETH have also been declining, falling to a nine-month low of 4,750 on May 8. The 30-day change remains negative, hovering around -50 at the time of writing.
Ethereum whale and shark address count balance. Source: Glassnode
Taken together, the data suggest ongoing distribution and weak conviction across key ETH holder cohorts, reinforcing the risk of a deeper drop if $2,000 breaks.
This reduction in whale counts aligns with the recent inflows into exchanges, indicating the path of least resistance remains down in the immediate future and selling pressure mounts.
