In today’s crypto news, Ethereum has fallen below a key technical support level that analysts have been monitoring closely for days. According to crypto analyst Ali Martinez, ETH is now trading below its 200-hour simple moving average (SMA). The analyst warned that the development could open the door to a deeper correction toward $1,580 if bulls fail to regain control.
The warning comes amid broader weakness across the cryptocurrency market. Bitcoin recently plunged below $63,000, triggering hundreds of millions of dollars in liquidations and dragging major altcoins lower. Ethereum has not escaped the selloff, falling to $1,648 at the time of Ali’s analysis.
Ethereum Falls Below Key Technical Support
Ali Martinez highlighted the breakdown in a chart he shared on X, noting that Ethereum had lost the 200-hour SMA. Traders widely follow this trend indicator as a gauge of short-term market strength.
The analyst had previously warned investors about the importance of this level. In a June 21 market update, Martinez noted that Ethereum was revisiting the lower boundary of a rising price channel. At the time, he argued that the pullback could help flush excess leverage from the market and establish a healthier structure for future price action.
However, he stressed that the 200-hour SMA represented the primary line of defense for bulls. He warned that failing to hold above this key moving average would shift the short-term structure and open the door to a deeper value reset toward $1,580.
That scenario has now materialized. Ethereum’s latest decline has pushed the asset below both the moving average and the lower portion of its recent trading range. As long as ETH remains below the 200-hour SMA, Martinez believes the asset could continue drifting toward the $1,580 region.
Broader Market Weakness Adds Pressure
Ethereum’s technical breakdown comes during a period of heightened volatility across digital assets. Bitcoin’s sharp drop below $63,000 triggered a wave of forced liquidations across futures markets. More than $528 million worth of crypto positions were liquidated over the past 24 hours. Long traders accounted for approximately $412 million of those losses, highlighting the extent of the bullish positioning that existed before the selloff began.
The market has also faced pressure from continued ETF outflows. Although withdrawals have slowed compared to earlier this month, institutional demand remains weaker than many investors had hoped. Reports from last week showed spot Ethereum ETFs recorded net outflows of approximately $10.05 million, while BlackRock clients continue to reduce exposure across BTC and ETH ETFs.
Despite the current weakness, Ethereum remains one of the market’s most important assets. Growing institutional adoption, expanding tokenization activity, and continued staking participation continue to support its long-term investment case.
For now, however, traders appear focused on the short-term technical picture. A recovery above the 200-hour SMA could help stabilize sentiment and put higher targets back into play. Until then, Ali Martinez believes the next major level to watch sits near $1,580, where Ethereum may attempt to establish a stronger support base.
Temitope Olajide
The CoinRemark Team
