According to Ai 姨 (@ai_9684xtpa), Ethereum (ETH) has recently dropped below the $2000 threshold, a significant event considering its previous stability above this level for several months. As of January 13, 2025, ETH was trading at $1985, marking a 3% decline within 24 hours, according to CoinGecko data. This sudden dip has caught traders off guard, especially those who were engaging in bottom-fishing strategies, expecting a rebound. The volume of ETH traded has also surged, reaching 1.2 million ETH within the past day, indicating increased selling pressure.

The implications for traders are considerable. Many had anticipated a bullish trend given the prior consolidation phase, as ETH had hovered between $2100 and $2200 since late November 2024. The current price drop challenges these assumptions, as market sentiment appears to have shifted, potentially due to macroeconomic factors or changes in investor confidence. Source data from Glassnode highlights a spike in on-chain activity, with an increase in the number of active addresses, suggesting heightened market interest, albeit with selling intent. Additionally, the ETH/BTC trading pair has shown a 2% decline, reflecting a broader market correction impacting multiple cryptocurrencies.

Technical indicators present mixed signals. The Relative Strength Index (RSI) is currently at 43, which suggests that ETH is nearing the oversold territory, potentially indicating a buying opportunity if bullish momentum resurfaces. Meanwhile, the Moving Average Convergence Divergence (MACD) indicator displays a bearish crossover as of January 13, signaling potential continued downward pressure. Market depth analysis reveals a thickening order book around the $1900 level, suggesting that some traders are positioning for further declines or potential support around this price point. With trading volumes exceeding the average by 25%, the volatility is expected to persist, making it crucial for traders to closely monitor market developments.