ETH Drops Below $2,100, Briefly Recovers Amid Broader Market Sell-Off

Ethereum (ETH) briefly dipped below the critical $2,100 support level earlier today, extending its daily losses to 4.03% before staging a modest recovery. The sudden sell-off in the largest altcoin mirrored a broader market downturn led by Bitcoin, which fell under $71,000 as captured in the latest Coin Newsweek chart analysis .

BTC’s Drop Below $71,000 Triggers Altcoin Bloodbath

The attached 4-minute chart for the BTC/USDT pair, sourced from TradingView, reveals the intensity of the selling pressure on the market leader. Bitcoin is seen struggling below the $71,000 mark, with its Relative Strength Index (RSI) hovering around 40.45. This level typically indicates weakening momentum and often precedes further downside, which historically triggers sharper percentage losses in more volatile assets like Ethereum.

The chart’s visible low near $68,240 shows the extent of the intraday plunge. As Bitcoin’s dominance temporarily spiked during the sell-off, capital rotated out of altcoins, exacerbating ETH’s decline.

Ethereum’s Brief Recovery and Key Levels to Watch

Following the initial drop to lows near $2,050, Ethereum buyers stepped in to defend the psychological $2,000 zone, pushing the price back above $2,100. However, the recovery remains tentative. Analysts suggest that ETH must reclaim the $2,150 level to invalidate further downside risk. Failure to hold current support could open the door for a retest of the $2,000 handle.

The cryptocurrency market remains highly sensitive to macroeconomic factors and liquidations. As of press time, ETH is trading at approximately $2,120, with traders closely watching Bitcoin’s next move for direction. The $71,000 level for BTC now acts as immediate resistance, and a clear break above it is needed to restore confidence in altcoins.

Sources: TradingView, Coin Newsweek Charts, Market Data.

Disclaimer: This content is for market information purposes only and is not investment advice.