A bloodbath. That’s the only way to describe Ethereum’s recent price action as the second-largest cryptocurrency plunged 15% to $2,000, reaching its lowest point since November 2024. ETH has been absolutely hammered, dropping 32.61% in the last month alone and a staggering 40.82% year-over-year. So much for that post-election rally everyone was so excited about.
The technical picture looks grim. ETH broke below vital support levels at $2,350 and $2,250, now trading well below its 100-hour Simple Moving Average. A bearish trend line has formed with resistance at $2,160, and price action created a new yearly low at $2,070 on February 28. Not great.
Ethereum’s chart is a bloodbath—support levels shattered, bearish trend established, and price action hitting new yearly lows.
Whales are driving this sell-off, and they’re not being subtle about it. Institutional demand has weakened considerably, with the Coinbase Premium Index turning negative. Exchange reserves are rising—always a bad sign—and Ethereum ETFs saw $51 million in outflows.
Meanwhile, ETH’s circulating supply is surging thanks to a reduced burn rate. This contrasts sharply with late 2021 when Ethereum hit its all-time high price of $4,400. Supply up, demand down. Economics 101, folks.
Market sentiment? Absolutely terrible. The Fear & Greed index sits at a miserable 15, indicating “Extreme Fear,” while social sentiment has crashed to a 12-month low. With 26 indicators flashing bearish signals versus just 3 bullish ones, traders are bracing for more pain.
The $2,000 psychological level is now the last line of defense. If that breaks—and it looks shaky—next support sits at $1,885 and then $1,645. Worse yet, if the double-top pattern plays out, we could be looking at $1,500. Ouch.
This isn’t just an Ethereum problem. The broader crypto market lost $220 billion in 24 hours, triggering $168 million in long liquidations. Many investors are now considering alternatives like Avalanche, which offers near-instant finality and significantly lower transaction fees ranging from $0.08 to $0.10. Altcoins are bleeding too, and the ETH/BTC ratio has plummeted to a 4-year low.
The next few trading sessions will be essential. Donald Trump’s tweet about strategic reserves initially sparked a market surge before contributing to this dramatic downturn. Buckle up.
