Digital asset markets have never lacked stories; it's just that these rollercoaster-like fluctuations can really be hard on the heart.

This morning, when I opened the candlestick chart, I almost couldn't stay steady—Ethereum actually dipped to around $2,650. I remember just a few days ago, everyone was discussing whether it could hold steady at $3,000, and now it has suddenly fallen to a multi-month low. Truly unpredictable.

This drop seems sudden, but there were early signs behind it. Exchange funds are continuously flowing out, leveraged longs are being liquidated en masse, and key support levels have been broken through—these three forces have formed a self-reinforcing death spiral, no wonder the decline is so fierce.

Over the years, I’ve experienced several bear markets, and I’m all too familiar with this market fragility. Honestly, such times are both dangerous and full of opportunities.

**What does the technical analysis tell us?**

Last night, Ethereum was still pushing up to $3,080, but suddenly it broke below the critical support at $2,800. This is a true reflection of the current weak market—any rebound is basically seen as an escape opportunity.

The $2,800 level was originally considered a strong bottom. Glassnode data clearly shows that at this price level, over 5.8 million ETH are accumulated at cost basis, which theoretically should form a strong support. But once this line is broken, the previous support instantly turns into resistance, holders start to cut losses, and selling pressure follows.

From a technical pattern perspective, the outlook is also not optimistic. Many analysts have identified the formation of a bear flag—after ETH broke below $3,200, this signal was already established. According to the measurement logic of the bear flag, the next target could be around the $2,300 zone. This is definitely not good news for holders.