The cryptocurrency market has been experiencing high volatility related to geopolitical issues such as the possible Russian invasion of Ukraine. Bitcoin and Ethereum, the two largest tokens by market capitalization, had been able to shake off the bearish slump that materialized in the early days of 2022; both digital currencies are now facing what appears to be the first market correction of the year, and this could drive ETH/USD down to an exchange price of $1,700 or even lower.

Similar to Bitcoin, Ethereum has become an established digital asset with a support level that bullish investors try to hold. This line of support is usually a set price or a trading range, and it is largely psychological. The current support level for Bitcoin is $40,000. For Ethereum, it is $2,900. Both tokens were unable to hold these levels during the third trading week of February, and some analysts believe that Ethereum could see exchange prices closer to $1,700 later this year.

While the bearish sell-off in the cryptocurrency market started at the end of last year and carried on until the first week of February, both Bitcoin and Ethereum seemed to be in an upward trend. This changed, though, as the digital currencies saw their market cap and exchange price plunge.

If you look at recent Ethereum/USD pricing charts, you will notice that the pair failed to hold the $2,900 support level and was unable to hold the lower $2,700 level for a second time. After this, the ETH/USD pair broke down and continued to trade below $2,600. After the market correction, the bears’ defense level moved higher to the $2,600 level, and the markets have been stuck above this level since February 18.

The bears have been unable to sustain their defense for long enough to move the market back up, and it seems to be ready to drop below $2,600. The technical indicators that we use to analyze price movements have not shown any reversal signals. The RSI indicator is at the center of the trading range, and the Stochastic indicator is still below the 80 level, which is bearish. The MACD indicator is not useful at the moment, as it has almost flatlined since the start of February.