TLDR
- Ethereum's value has slid beneath major levels of support at $3,200 and $2,200, falling over 33% in just three weeks to approximately $1,891.
- Significant cash outflows are impacting ETH spot ETFs, with withdrawals reaching about $73 million just last Thursday.
- Despite the falling price, Ethereum holds its ground as the top blockchain in the DeFi space, boasting a total value locked (TVL) of $45 billion.
- The development team is busy preparing the Pectra upgrade, aiming for a testnet launch by mid-April 2025.
- Right now, ETH is facing resistance in the $1,900-1,950 range but has managed to find a support level just above $1,760.
In a marked departure from Bitcoin's ascent, Ethereum has experienced a significant downturn in recent weeks, pushing through crucial support levels and eliciting concern among investors.
The price tumble started right after Donald Trump's second inauguration, with Ethereum losing two pivotal support levels at $3,200 and $2,200, over three weeks now seeing a 33% slide to near $1,891, as recorded on Friday, March 14.
ETH Price
This downturn is happening against a backdrop of general financial market strain, with major indices like the S&P 500 falling due to uncertainty from U.S. trade tensions, steering long-term investors towards havens like gold and stablecoins.
According to on-chain insights from Glassnode, there's rising anxiety among Ethereum's long-term holders, as seen in consecutive weeks of cash outflows from U.S. spot Ether ETFs, including $73 million withdrawn this past Thursday alone.
From a technical angle, ETH appears to be oversold in comparison to Bitcoin. Ethereum has been unable to breach the $4,000 mark over the past year and now must hold onto its current support levels to avert further drops towards $1,500.
The ETH/BTC pair is teetering on a vital support level around 0.023. If this holds, it could rejuvenate bullish views in the short term, with technical indicators hinting at a potential recovery if key thresholds are sustained.
Recently, Ethereum has hinted at recovery by forming a base above $1,760 and initial upward movement. It managed to overcome several resistance lines, including $1,820 and $1,850. There was a temporary rally above $1,920, exceeding the 23.6% Fibonacci retracement from $2,150 to $1,752.
However, selling momentum remains strong near the $1,950 resistance area, with Ethereum currently trading below $1,920 and the 100-hourly Simple Moving Average. A short-term bearish trendline has emerged, providing resistance near $1,900 on the hourly graphs.
The upcoming target for resistance lies around $1,950, aligning with the 50% Fibonacci retracement level. Surpassing this could redirect ETH to $1,990 and potentially $2,050, with further progress unlocking prices aiming at $2,120 or even $2,250.
On the downside, initial support for Ethereum is near $1,845. Major support is found at $1,800, with further backing at $1,750. A break below these could lead prices toward $1,720, or even $1,650 soon.
Fundamentals still Strong
Despite the hiccups in pricing, Ethereum's underlying strengths hold up firm. It continues to lead the DeFi scene with an approximate $45 billion in TVL, supporting a stablecoin market cap over $123 billion.
Competitors like Solana are turning up the heat in the layer-one blockchain space. To keep ahead, Ethereum's developers are focused on the forthcoming Pectra upgrade. Ethereum Foundation's Tim Beiko announced that the third testnet, Hoodi, is slated for launch by mid-April 2025 as final preparations for the upgrade.
For Ethereum to overturn its current downtrend, it needs to breach resistance at $1,900 and $1,950, which could spark a significant rally and renew confidence in ETH's market direction.
