Ethereum's price has seen a significant 13% drop in the past week, hitting a low of $1,997 during Monday's early Asian trading hours. This marks the lowest level for the leading altcoin since December 2023.

With a prevailing bearish trend, analysts predict that Ethereum may soon breach the critical $2,000 support level once more.

A deeper dive into the market data reveals that about 50% of ETH holders have slipped into losses amidst the recent selloffs. The altcoin is currently trading well below its Ichimoku Cloud, indicating a bearish outlook that has persisted since January 25.

Turning to technical indicators, the Leading Spans A and B are forming dynamic resistance levels at $2,346 and $2,742 respectively, exerting downward pressure on Ethereum's price.

The Ichimoku Cloud serves as a barometer of market momentum, with the current positioning signaling a downtrend for ETH. As the cloud acts as a resistance zone, it compounds the likelihood of further price declines if Ethereum remains below this threshold.

Recent market dynamics have led to a notable drop in the percentage of ETH wallet addresses in profit, now standing at a year-to-date low of 50%. This sharp decline from 82% at the start of the year could spur additional selloffs as holders seek to limit their losses.

Should selling pressure persist, Ethereum's $2,000 support level might not hold, potentially paving the way for further downside movements. However, a positive turnaround in market sentiment could reverse this bearish trajectory, with a resurgence in demand pushing ETH towards the $2,224 mark and beyond, potentially aiming for the coveted $2,500 region.