Ether’s (ETH) drop below the $2,000 on Friday put it at risk of a deeper correction in the coming weeks or months.

Key takeaways:

• Ether’s price shows structural weakness as it fails to hold above the $2,000 psychological support.

• Analysts say ETH price may drop further toward the $1,750-$1,850 support zone.

• Ether’s demand stays negative, increasing its downward potential. 

Ether traders anticipate a deeper correction

Data from TradingView showed ETH/USD trading at $1,975, down 5% over the last 24 hours. This drop was accompanied by more than $111 million in long ETH liquidations. 

Related: Bitmine launches institutional Ethereum staking platform

The pair had failed to crack through resistance at $2,200 earlier in the week, as spot Ether exchange-traded fund (ETF) outflows, falling DEX volumes, and declining ETH futures premium derailed Ether’s recovery. 

“$ETH keeps pressing into the same resistance, but the story sits beneath price action,” trader Onur said in an X post on Friday, adding:

“Even with strong long-term narratives, short-term demand still looks thin.”

Fellow analyst CryptoWZRD said a ETH could see a “further decline” toward the $1,800 support zone after the altcoin closed below $2,200 on Thursday.

“$ETH has dropped below the $2,100 level,” analyst and trader Ted Pillows said in a Friday X post, adding:

“This is a sign of weakness and shows what’s coming next for ETH.”

An accompanying chart suggested that the price could first drop toward the $1,800 support level, before rebounding.

As Cointelegraph reported, a close below the 50-day simple moving average at $2,000 may pull the ETH/USD pair to $1,900 and subsequently to the $1,850-$1,750 level.

Ether’s apparent demand hits 16-month low

Ether’s Apparent Demand has flipped negative after dropping to its lowest level since October 2024, as traders adopted a risk-off stance due to geopolitical uncertainty and macro headwinds.

Capriole Investment’s Ethereum Apparent Demand metric shows that the demand for ETH has been negative since March 3, bottoming around -58,000 ETH on March 16, marking 16-month lows. The metric has since improved to -23,475 ETH at the time of writing. 

Meanwhile, spot ETH ETFs have recorded net outflows for seven consecutive days, totaling $391.8 million. 

Global Ether exchange-traded products (ETPs) also recorded $27.2 million of outflows last week, reinforcing reduced appetite for ETH among institutional investors.