Ethereum must hold $1,900 to prevent further decline

Ethereum (CRYPTO:ETH) must maintain its price above the critical $1,900 level to avoid a potential drop to $1,500. 

This level is crucial for Ethereum's future price direction as it faces bearish market signals and declining investor confidence.

According to the Market Value to Realized Value (MVRV) pricing bands, which help gauge extremes in unrealised profits or losses, Ethereum’s mean realised price currently stands at $1,911. 

If Ethereum falls below this threshold, the likelihood of a further decline increases, potentially pushing ETH's price down to $1,529. 

The realised price represents the average value at which Ethereum was last moved, and dropping below it could trigger investor capitulation, leading to more selling pressure as holders may exit at a loss.

Recent data from CryptoQuant highlights a notable decrease in the amount of ETH being withdrawn from exchanges. 

Typically, high withdrawal volumes indicate that investors are moving assets off exchanges for long-term holding, which helps support prices. 

However, the current decline in withdrawals suggests a higher risk of price drops as more ETH is being distributed rather than accumulated. 

If this trend continues, Ethereum could see its price fall below $2,000.

Technical indicators also show a bearish outlook for Ethereum. 

The Moving Average Convergence Divergence (MACD) indicator, which measures market momentum, signals bearish momentum for ETH. 

Ethereum’s price briefly rose from $2,223 to $2,388 on September 7, but the lack of significant trading volume halted further gains. 

If bearish sentiment prevails, Ethereum could fall further to $2,150.

However, the bearish scenario could be reversed if there is a surge in ETH withdrawals from exchanges, which could boost buying pressure and push Ethereum's price back up to $2,680. 

Should ETH maintain a level above $1,911 and investor demand strengthens, the altcoin might rally towards the $4,587 mark in the longer term.

At the time of reporting, the Ethereum (ETH) price was $2,379.14.