TLDR
- Ethereum price has crashed below $2,000, extending year-to-date losses to over 37%
- Technical analysis suggests ETH could potentially fall to $1,250-$1,500 levels
- Over $230 million in long ETH positions were liquidated amid market turbulence
- Ethereum ETF outflows surged to $120 million last week, showing reduced institutional interest
- Despite the downturn, major Ethereum whales accumulated 330,000 ETH in the past 48 hours
Ethereum has experienced a steep decline in price, dropping below the $2,000 mark in recent trading. This downturn marks a worrying trend for the world’s second-largest cryptocurrency.
The price crash has extended Ethereum’s year-to-date losses to more than 37%. This decline represents a sharp reversal from earlier optimism following the US Presidential election in November 2024.
Technical indicators paint a concerning picture for ETH investors. According to crypto analyst Ali Martinez, Ethereum has broken down from a parallel channel pattern. This technical breakdown suggests further bearish price action may lie ahead.
If Ethereum fails to hold current support levels, some analysts predict it could fall by another 75%. This would take the price all the way down to approximately $1,250, representing a dramatic decline from recent highs.
The ETH price drop comes amid a broader cryptocurrency market correction. Total market liquidations have soared to more than $600 million according to Coinglass data. This indicates widespread pressure across the crypto space.
Ethereum’s open interest has dropped by 2.67% to $19 billion. This decline hints at bearish sentiment among futures traders, who appear to be reducing their exposure to ETH.
Liquidations have hit Ethereum traders particularly hard. Over $230 million in long positions were wiped out in a single day. These liquidations have shaken out many overleveraged traders from the market.
Institutional interest in Ethereum has also been waning. Spot Ethereum ETFs saw outflows of over $120 million in the past week. This suggests diminishing confidence among larger investors.
Market Analysis
The price decline broke a key bullish trendline that began in June 2022. This trendline had started after the crash of Terra’s algorithmic stablecoin, which had caused widespread losses throughout the crypto market.
Analysts note that this decisive breakdown likely signals the end of Ethereum’s nearly three-year bullish trend. The breach of this long-term support line shifts focus to potential further losses.
Over $230 million in #Ethereum $ETH long positions were liquidated yesterday, shaking out overleveraged traders! pic.twitter.com/MP9uR7DsDt
— Ali (@ali_charts) March 10, 2025
The next major support level is seen around $1,500. This price point represents lows established during September-October 2023, which could provide a floor for the current decline.
Despite these bearish signals, some market participants remain optimistic. Large Ethereum whales have purchased approximately 330,000 ETH in just 48 hours. This accumulation by major holders may signal longer-term confidence.
Additionally, over 600,000 ETH have been withdrawn from cryptocurrency exchanges in the past week. This trend often points to a shift toward long-term holding rather than immediate selling pressure.
For Ethereum to regain upward momentum, bulls would need to reclaim the $2,460 resistance level. Approximately 10.95 million investors hold ETH at these prices, making it a key threshold for any potential recovery.
Some traders continue to express bullish long-term sentiment despite current market conditions. Crypto analyst Crypto Patel noted his strategy of “buying ETH on every dip” with a long-term price target of $10,000 per ETH.
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