Ethereum (ETH), the second-largest cryptocurrency by market cap, is feeling the pressure as its price takes a significant dip. ETH has fallen below key support levels of $1,700 and $1,600, continuing to experience market headwinds from ongoing trade tariff concerns.

According to reports from CryptoQuant, a leading on-chain analysis platform, many Ethereum investors are currently in the red, with most having purchased ETH at an average price around $2,200.

The analytics platform further points out that Ethereum’s next major price floor is predicted to be around $1,290. Should the price drop to this level, investors could face potential losses of $910 per coin, possibly leading some to sell.

As of right now, Ethereum is trading at $1,553.62, which is an 11.95% decrease over the last 24 hours, according to data from CoinMarketCap. Earlier trading saw the asset plunge to a low of $1,473 after breaking through crucial price points.

However, this lower price appears to have sparked interest from buyers, leading to a slight rebound for Ethereum. As investors seem to be ‘buying the dip,’ trading volume has skyrocketed by an impressive 570.91%, reaching $52.37 billion.

Analysis from CryptoQuant suggests this massive jump in trading volume might be due to investors trying to minimize their losses, and this could significantly influence market activity in the near future.

The on-chain platform continues to emphasize that $1,290 is likely to act as a significant bottom if the price continues to fall. They anticipate that Ethereum could see strong renewed buying interest around this price point.

Ethereum whale intervention and bearish projection

CryptoQuant also highlights the potential role of large Ethereum holders, or “whales,” who possess over 100,000 ETH, in any potential recovery. It’s suggested that if prices fall further, these whales might step in to defend against further drops by purchasing more ETH and holding onto their assets.

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Market watchers are certainly hoping that the bearish predictions of Peter Schiff regarding Ethereum’s price don’t come true. The well-known financial commentator has suggested that ETH could plummet all the way down to $1,000, which is significantly below CryptoQuant’s estimated floor.