Ethereum drops to 16-month low as analysts warn of further declines
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Ethereum prices tumbled 15% in early Tuesday trading, reaching a 16-month low of $2,035. The cryptocurrency market as a whole has shed over $400 billion since its Sunday peak, with Ethereum among the hardest-hit assets. This decline marks a 50% drop from its early December 2024 high of $4,000, signaling a return to bear market territory.
Technical analysts have flagged concerning patterns in Ethereum’s price action. Market strategist ‘Nebraskangooner’ identified a confirmed double-top formation, suggesting a potential breakdown to the $1,200 level—lows not seen since late 2022. Similarly, analyst Dana Marlane noted that Ethereum has broken its uptrend, with a downside target of $1,000. Arete Capital’s McKenna described Ethereum’s chart as one of the most bearish formations in recent memory.
Adding to the bearish outlook, the ETH/BTC ratio fell to a five-year low of 0.024, indicating weaker demand for Ethereum relative to Bitcoin. The cryptocurrency also failed to hold above its 200-week moving average, a key long-term support level currently around $2,500. Analysts warn that failure to reclaim this level could accelerate further downside volatility.
Macroeconomic factors are also playing a role in the selloff. The Kobeissi Letter highlighted a broad shift toward risk-off assets as escalating trade tensions and economic policy uncertainty weigh on global markets. The flight from risk was evident across multiple asset classes, with stocks, crypto, and oil all experiencing sharp declines.
Despite gold reaching an all-time high in late February, Bitcoin has failed to act as a safe-haven asset, decoupling from the precious metal’s bullish trend. The recent announcement of a U.S. strategic crypto reserve has done little to support prices, as the total crypto market cap has fallen by $500 billion in just 24 hours.
Investors will be watching whether Ethereum can stabilize above key support levels or if further selling pressure will push it closer to bearish projections.
Technical analysts have flagged concerning patterns in Ethereum’s price action. Market strategist ‘Nebraskangooner’ identified a confirmed double-top formation, suggesting a potential breakdown to the $1,200 level—lows not seen since late 2022. Similarly, analyst Dana Marlane noted that Ethereum has broken its uptrend, with a downside target of $1,000. Arete Capital’s McKenna described Ethereum’s chart as one of the most bearish formations in recent memory.
Adding to the bearish outlook, the ETH/BTC ratio fell to a five-year low of 0.024, indicating weaker demand for Ethereum relative to Bitcoin. The cryptocurrency also failed to hold above its 200-week moving average, a key long-term support level currently around $2,500. Analysts warn that failure to reclaim this level could accelerate further downside volatility.
Macroeconomic factors are also playing a role in the selloff. The Kobeissi Letter highlighted a broad shift toward risk-off assets as escalating trade tensions and economic policy uncertainty weigh on global markets. The flight from risk was evident across multiple asset classes, with stocks, crypto, and oil all experiencing sharp declines.
Despite gold reaching an all-time high in late February, Bitcoin has failed to act as a safe-haven asset, decoupling from the precious metal’s bullish trend. The recent announcement of a U.S. strategic crypto reserve has done little to support prices, as the total crypto market cap has fallen by $500 billion in just 24 hours.
Investors will be watching whether Ethereum can stabilize above key support levels or if further selling pressure will push it closer to bearish projections.