ETH joined the market-wide correction over the past few days, dropping from $2,200 to a three-week low of $1,970 before it recovered slightly to the current $2,000.
This is the asset’s most crucial level for the time being, and it’s close to breaking below it. As such, analysts have rushed to offer some insight on what might happen to its price if it’s lost or if it manages to bounce off decisively.
Why Is ETH Down?
Not only is Ethereum’s native token down by 9% in just a few days from its Wednesday peak, but it has shed more than 16% of its value from the previous week’s high at approximately $2,400. The most obvious reasons for this 10-day decline could be linked to the US Federal Reserve’s hawkish stance on rate cuts and the growing uncertainty in the Middle East, as the war has long escaped the region, at least in terms of economic impact.
In addition, ETH investors using the spot ETFs to gain exposure to the asset have entirely changed their strategy. Data from SoSoValue shows that they accumulated ETF shares for six trading days straight, from March 10 to March 17. However, the streak was broken on March 18, and it has been nothing but red since then.
In fact, investors have pulled out over $440 million during this eight-day consecutive withdrawal phase, and the cumulative net inflows have dropped to $11.52 billion.
Spot Ethereum ETF Flows. Source: SoSoValue
Whales Stepping Up
Popular analyst CW noted that retail investors have also been selling ETH “out of fear,” but outlined the silver lining: “whales are absorbing the selling volume.” Their data shows that the buy orders for the largest altcoin remain “very strong,” and there are no significant sell orders placed.
Buy orders for $ETH are very strong, and there are no sell orders.
Whales are absorbing the selling volume from retail investors.
When whales drive down the price, retail investors sell out of fear, and the whales absorb that volume again. pic.twitter.com/t0fBa9hP43
— CW (@CW8900) March 28, 2026
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Fellow analyst Ted Pillows outlined the significance of the $2,000 level, which is being tested now. He noted that ETH could push toward $2,150 if it reclaims it decisively, but it could dump to “new lows” if it loses it.
In a separate tweet, Pillows added that ETH could rebound to the first liquidity cluster at around $2,100 shortly, only to resume its downtrend after it sweeps it.
$ETH short-term downside liquidity has been mostly taken out.
There are decent liquidity clusters around the $2,100 level, which could be next.
After that, Ethereum will continue its downtrend. pic.twitter.com/CZbtgi7O5W
— Ted (@TedPillows) March 28, 2026
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