Ethereum Price Risks 40% Drop as Historic Resistance Returns

Ethereum Price Risks 40% Drop as Historic Resistance Returns | FXEmpire
Advertisement
Advertisement

Ethereum Price Risks 40% Drop as Historic Resistance Returns

By: Yashu Gola
Published: Sep 1, 2026, 12:35 GMT+00:00
Live PriceEthereum

Key Points:

• Ethereum’s 70% rebound is testing the 100-week EMA near $2,554, echoing a resistance setup seen before the 2020 crash.
• A rejection followed by a break below the 20-week EMA near $2,113 could expose ETH to $1,500–$1,550.
• ETH’s liquidation map shows $3.79 billion in long liquidations toward $1,760, with a major $180.33 million cluster near $1,840.

• +0.04%Ethereum Forecast

Ethereum’s native token, Ether (ETH), has staged a sharp V-shaped recovery from its June lows. Still, the rebound is now running into a major long-term resistance level that previously preceded a deeper market correction.

ETH Tests 2020-Era EMA Resistance

As of Tuesday, Sept. 1, Ether was trading near $2,460, up approximately 70% from its 2026 lows.

In doing so, the price came closer to its 100-week exponential moving average (100-week EMA, purple) near $2,554. The level could determine whether ETH’s recovery develops into a broader bullish reversal or loses momentum in the coming weeks.

A similar setup appeared during Ethereum’s 2019–2020 market cycle. ETH rebounded sharply after bottoming near $82 in late 2018 but struggled to sustain gains above its 100-week EMA during subsequent recovery attempts.

Repeated rejection from the moving average eventually preceded another major selloff, culminating in Ethereum revisiting roughly the same $82 support region during the March 2020 market crash.

Ethereum’s current structure bears some resemblance to that period.

After establishing what could become its first major bottom around $1,500, ETH has recovered toward the 100-week EMA but has yet to reclaim it convincingly.

A rejection near $2,500–$2,550, followed by a break below the 20-week EMA near $2,113, could strengthen the bearish fractal.

That could expose ETH to a deeper correction toward $1,500–$1,550, roughly 40% below the 100-week EMA resistance.

Still, the weekly relative strength index (RSI) remains constructive near 59. A decisive close above the 100-week EMA would weaken the bearish setup and favor further recovery.

ETH Liquidity Map Strengthens Downside Risk

Ethereum’s one-month liquidation heatmap adds another bearish layer to the technical setup, showing substantially more leveraged liquidity below the current price than above it.

A rally toward $2,650 could liquidate more than $856 million in short positions. However, a decline toward $1,760 could wipe out roughly $3.79 billion in leveraged longs, creating a much larger downside liquidity pool.

The strongest individual liquidation cluster sits near $1,840 (the yellow zone), where about $180.33 million in long positions are at risk. This concentration could act as a potential liquidity magnet during a broader correction.

Therefore, a breakdown below key technical support could accelerate ETH toward the $1,840–$1,760 region before the deeper $1,500 fractal target comes into focus.

About the Author

Yashu GolaSenior Cryptocurrencies Analyst

Yashu Gola is a crypto journalist and analyst with expertise in digital assets, blockchain, and macroeconomics. He provides in-depth market analysis, technical chart patterns, and insights on global economic impacts. His work bridges traditional finance and crypto, offering actionable advice and educational content. Passionate about blockchain’s role in finance, he studies behavioral finance to predict memecoin trends.

Latest news and analysis

Christopher LewisTue, 01 Sep 2026 12:27:52 GMT

Rising 10-Year Yields Put Copper, Russell 2000 and BTC at Risk

BTC-0.03%COPPER-0.29%US2000/USD-0.82%
Tim DugganTue, 01 Sep 2026 11:48:57 GMT

Crude Oil Analysis: Why This Diesel Crack Spike Matters for Prices at the Pump

Brent Oil+3.23%WTI Oil+3.94%
Yashu GolaTue, 01 Sep 2026 10:52:11 GMT

HYPE Price Eyes 10% Surge as Hyperliquid Pushes Toward US Expansion

Muhammad UmairTue, 01 Sep 2026 10:30:32 GMT

Gold Price Forecast: Will $4,300 Support Hold Amid Fed Rate Hike Fears?

GOLD-2.22%WTI Oil+3.94%
James HyerczykTue, 01 Sep 2026 09:50:11 GMT

Silver (XAG) Forecast: Yields Near 20-Month High Send Silver Market Lower

SILVER-2.51%
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement

Source: www.fxempire.com