Ethereum drops to $1,800 as 25% monthly slide hits critical support

Ethereum is testing a make-or-break support zone at $1,800 after a 25 percent monthly slide wiped out billions in leveraged positions.

Ethereum fell 25 percent over the past month to $1,800, testing a support zone that has triggered rallies three times since 2018.

"Reclaiming $1,900 could trigger a move toward $2,000 in the near term," Ted Pillows, a market analyst, said. The resistance sits just above the current price, with the next supply zone near $2,200 before $2,400.

Over $3.2 billion in crypto long positions were liquidated in the past three days, while Ethereum-linked exchange-traded funds posted outflows for 12 consecutive sessions. The Fear and Greed Index dipped to Extreme Fear for the first time since March, and trading volume reached $31 billion, about 14 percent of ETH's circulating market cap.

If $1,800 fails, Ethereum could slide to $1,400, a 22 percent downside risk. If the level holds, analysts project a move to $2,400 first, then $6,000 over the next 12 to 18 months.

ETF outflows and tariff threats deepen the selloff

The 12-day outflow streak in Ethereum ETFs confirms a broad risk-off move, according to the analysis. President Donald Trump's threat to raise tariffs on more than 60 countries added to the pressure, pushing the Fear and Greed Index into Extreme Fear for the first time since March.

Ethereum's 52-week high of $4,954 was set on Aug. 24, 2025, and its low of $1,507 on June 6, 2026. The token is down 51 percent year over year, with a market capitalization of $226.3 billion. Bitcoin, the largest cryptocurrency, is down 46 percent over the same period, with the two assets together representing 69 percent of the entire crypto market.

The January bearish breakout below the 100-day exponential moving average had already set the stage for weakness. Ethereum dipped to $1,741 after that signal, then faced a rejection at the $2,220 resistance, followed by another leg lower that brought the token to its current level.

Whale accumulation and network activity offer counterweight

BitMEX co-founder Arthur Hayes acquired 1,290 ETH worth about $2.5 million, using funds transferred to trading firms Cumberland and FalconX. The purchase came as Ethereum consolidated below the $1,900 resistance.

Network activity remains supportive. New smart contract deployments on Ethereum surged past 300,000 in July, according to Messari data, suggesting developers continue building despite the price decline.

The $1,800 retest marks the first potential failure of the weekly RSI buy signal in eight years if it breaks. Even in that scenario, analysts consider a cycle bottom nearby, making the drop a potential buying opportunity for long-term holders. A strong rally in the next two to three days would confirm the historical pattern and could set up a move toward $2,400.

This article is for informational purposes only and does not constitute investment advice.