Ethereum Price Forecast: ETH drops below $2,000 following the resignation of Nvidia's Jensen Huang

Ethereum trades at $2,015 today

• A brief dip below $2,000 followed the resignation of Nvidia CEO Jensen Huang, putting Ethereum under pressure.
• With US sentiment still negative, ETH ETFs continue to record outflows.
• Support at $1,970 could come into play for ETH if it remains below $2,000.

A 3% decline on Thursday briefly took Ethereum (ETH) below $2,000 as selling in AI-related shares spread to cryptocurrencies. The equity sell-off followed the resignation of Jensen Huang as CEO, President and member of the Board of Directors of chipmaker Nvidia (NVDA).

Ethereum comes under pressure following Huang's resignation

Reports alleging that Huang had another affair, this time with the company's Vice President of Healthcare Kimberly Powell, preceded the decision. Even before those reports, Huang had faced intense scrutiny after confirming an affair with a Chinese executive named Huang Le, whom US officials deemed a Chinese intelligence asset.

Heavy initial losses across several AI-related neocloud shares followed Huang's departure. Nvidia, Nebius (NBIS), CoreWeave (CRWV) and Iren (IREN) briefly dropped by 10%, 21%, 14% and 9%, respectively, before recovering slightly.

Cryptocurrencies, whose positive correlation with AI shares has strengthened over recent months, were also caught in the sell-off. Over the past 24 hours, global crypto market capitalisation has declined by 5.7%.

At the time of writing, Ethereum is down 3% and trading below $2,000. According to Coinglass data, the decline has prompted $126.7 million in liquidations over the past 24 hours, with long positions accounting for $103.9 million.

US spot ETH exchange-traded funds (ETFs) are also losing investor capital. SoSoValue data show net outflows of $144.8 million on Wednesday, while the funds have registered just one day of inflows since the start of November.

US sentiment, as measured by the Coinbase Premium Index, shows a comparable pattern. Since early September, the index has remained below zero, indicating that selling pressure from US-based investors has predominated.

Ethereum technical outlook: ETH approaches $1,970 support following brief dip below $2,000

Trading at $2,016, ETH remains in a bearish phase, substantially below its 20-, 50- and 100-day Exponential Moving Averages (EMAs), which are grouped between roughly $2,220 and $2,330. With these short- and medium-term averages sitting above the price, downward pressure appears persistent despite momentum reaching oversold territory. The 14-day Relative Strength Index (RSI) is around 28, while the Stochastic Oscillator (Stoch) is near 7. Together, these readings suggest that any initial rebound would be corrective as long as the pair remains constrained by those overhead trend levels.

The key $1,971 support level is now being tested by ETH. A break below $1,971 could send the leading altcoin towards the horizontal levels at $1,827 and $1,706.

The first resistance on any recovery lies at the $2,101 horizontal level, where a modest rebound stalled on Wednesday. Beyond that, ETH faces a hurdle at $2,204, followed by the 20-day EMA at $2,227 and the $2,250 level. The 100-day and 50-day EMAs stand further above, at $2,320 and $2,334, respectively.

(The technical analysis of this story was written with the help of an AI tool. Know more.)