Analysis: Ethereum's recent 20% plunge breaks the bull market trend line since Terra's crash in 2022

TradingView data shows that the price of Ethereum has plummeted nearly 20% in the seven days leading up to March 9, marking its largest weekly percentage drop since November 2022.

This sell-off broke through the bull market trend line that began after the low point following the collapse of Terra's algorithmic stablecoin UST in June 2022, a crash which resulted in billions of dollars lost for investors.

This decisive drop suggests that Ethereum's nearly three-year bull market trend may have ended, with focus shifting towards deeper losses. It could potentially fall to support levels near lows from September-October 2023, around $1,500. Trend lines help visualize where traders' funds are flowing and where prices might change.

Rising or bullish trend lines represent levels where demand is expected to be sufficient to prevent further price drops. When long-term bullish trend lines are broken through, as was the case with ETH, it indicates weakened demand and suggests a possible bearish turn in market trends. Breaking through these trend lines often prompts other traders to sell off their holdings, resulting in larger losses.