Is Ethereum headed for $1,380 after losing key support below $1,800?

Ethereum ($ETH) slipped below $1,800 on Thursday, marking its first drop to this level since February 2026.

The bearish performance comes amid accelerating spot selling and increased distribution from long-term holders.

The move adds to a broader wave of weakness across the crypto market, driven by sustained risk-off sentiment.

Technical indicators suggest that the selloff might continue for a while, with the $1,380 support level a likely target.

Long-term holders accelerate distribution

Ethereum is down 5% in the last 24 hours and is now trading around the $1,770 level.

The bearish performance comes as on-chain data shows a clear rise in selling activity from previously inactive wallets.

The Age Consumed metric, which tracks movement of dormant or long-held tokens, spiked over the past two days as $ETH declined. This suggests that long-term holders (LTHs) are increasingly participating in sell-offs.

Historically, a surge in this metric has aligned with periods of heightened distribution pressure, often reinforcing downside momentum.

Furthermore, the realised profit/loss metric indicates that the most recent selling has come from underwater positions.

While daily losses remain moderate, they have been consistently negative since April. This suggests that the selling pressure is being driven by risk aversion, holders are exiting positions at a loss, and confidence remains weak across recent market participants.

This steady increase in realised losses points to sustained distribution rather than short-term profit-taking.

On the institutional side, demand for Ethereum products has been declining in recent weeks.

US spot Ethereum ETFs have recorded 16 consecutive days of net outflows, the longest streak since their launch in July 2024.

The trend highlights fading institutional inflows at a time when spot markets are already under pressure.

Despite falling prices, derivatives positioning remains mixed.

The Open Interest remains above $26 billion, while the funding rate is still positive. Furthermore, the market is dominated by long positioning.

This suggests traders are still betting on a near-term rebound, even as spot prices continue to weaken.

Ethereum technical outlook: Bearish trend remains intact

The $ETH/USD 4-hour chart is extremely bearish as Ethereum has lost 11% of its value in the last seven days.

At press time, Ethereum is trading below the 20-day EMA, 50-day EMA, and 100-day EMA (all clustered between roughly $2,030 and $2,245), reinforcing the bearish trend despite deeply oversold conditions.

The Relative Strength Index (RSI) of 27 means that Ethereum is currently in the oversold territory.

The MACD lines are also within the negative region, adding further confluence to the bearish narrative.

If the bulls regain control, they would target the first major support-turned-resistance level at $1,909, with another level at $2,018.

A daily close above these levels could allow the bulls to extend the rally and target the 20-day EMA, 50-day EMA, and 100-day EMA (all clustered between roughly $2,030 and $2,245).

However, if the selloff persists and $ETH drops below the $1,740 support, it could extend its decline towards the next major level at $1,524.

The weekly chart suggests a floor around the $1,380 level, last tested on March 31 2025.