Data: Ethereum's nearly 20% plunge breaks the bull trend line since the Terra crash in 2022

TradingView data shows that the price of Ethereum plummeted by nearly 20% in the seven days ending on March 9, marking the largest weekly percentage drop since November 2022. This sell-off broke the bullish trend line that started from the low point after the collapse of the Terra algorithm stablecoin UST in June 2022, which led to losses of billions of dollars for investors.

This decisive decline indicates that Ethereum's bullish trend of nearly three years may have come to an end, shifting the focus to deeper losses, possibly falling to support levels near the lows of September-October 2023, around $1,500.

Trend lines help visualize the direction of trader capital flows and where prices may change. An upward or bullish trend line represents a level of demand expected to be sufficient to prevent further price declines. When a long-term bullish trend line is broken, as in the case of ETH, it indicates weakening demand, suggesting a potential shift in market trend towards bearish. Breaking the trend line typically prompts other traders to sell off, leading to even greater losses.