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

ChainCatcher news, according to Coindesk, TradingView data shows that the price of Ethereum plummeted nearly 20% in the seven days ending 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 algorithmic stablecoin UST in June 2022, which resulted in billions of dollars in losses for investors.

This decisive drop suggests that the bullish trend for Ethereum over the past three years may have ended, with focus shifting to deeper losses, potentially falling to support levels near the lows of September-October 2023, around $1,500.

Trend lines help visualize the direction of capital flow among traders and where price changes may occur. An upward or bullish trend line represents a level where demand is 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 and suggests a potential bearish shift in market trends. Breaking below a trend line often prompts other traders to sell, leading to larger losses.