TLDR
Ethereum has lost major support levels ($3,200 and $2,200), dropping over 33% in three weeks to trade around $1,891
ETH spot ETFs are experiencing cash outflows, with approximately $73 million withdrawn on Thursday alone
Despite price struggles, Ethereum remains the leading blockchain in DeFi with $45 billion TVL
Developers are working on the upcoming Pectra upgrade with a testnet launch planned for mid-April 2025
ETH currently faces resistance at $1,900-1,950 levels but found support above $1,760
Ethereum has experienced a steep decline in recent weeks, diverging from Bitcoin’s upward trajectory as the second-largest cryptocurrency continues to face downward pressure. While Bitcoin follows gold’s rise, Ethereum has been caught in a persistent downtrend, breaking key support levels and concerning investors.
The price drop began following Donald Trump’s second inauguration. Ethereum has lost two crucial support levels at $3,200 and $2,200. Over the past three weeks, ETH has plummeted more than 33%, trading near $1,891 as of Friday, March 14.
This decline comes amid broader financial market pressure. Major stock indexes including the S&P 500 have been sliding due to uncertainty from U.S. tariff wars. These conditions have pushed long-term investors toward safer assets like gold and stablecoins.
On-chain data from Glassnode points to growing fear among long-term Ethereum holders. This sentiment is reflected in the consistent cash outflows from U.S. spot Ether ETFs, which have seen withdrawals for three straight weeks. Thursday alone saw net outflows of approximately $73 million.
From a technical standpoint, ETH appears oversold compared to Bitcoin. Ethereum has struggled to break the $4,000 resistance level over the past year and now faces critical support tests. To avoid further decline toward $1,500, ETH must hold its current support level.
The ETH/BTC pair is testing a crucial support level around 0.023. If this level holds, it could help restore bullish sentiment in the near future. Technical indicators suggest the possibility of a recovery if key levels can be maintained.
Recent price action shows Ethereum forming a base above $1,760 and starting a recovery wave. The price managed to clear several resistance levels including $1,820 and $1,850. Bulls pushed the price above $1,920 temporarily, surpassing the 23.6% Fibonacci retracement level of the downward movement from $2,150 to $1,752.
However, selling pressure remains strong near the $1,950 resistance zone. Ethereum currently trades below $1,920 and the 100-hourly Simple Moving Average. A short-term bearish trend line has formed with resistance at $1,900 on the hourly chart.
The next key resistance sits near $1,950, which coincides with the 50% Fibonacci retracement level. If Ethereum can break above this, the next targets would be $1,990 and potentially $2,050. Clearing these levels could open the path toward $2,120 or even $2,250.
On the downside, Ethereum faces initial support near $1,845. The first major support level sits at $1,800, with additional support at $1,750. A break below these levels could push the price toward $1,720 or even $1,650 in the near term.
Fundamentals still Strong
Despite price struggles, Ethereum’s fundamentals remain strong. It continues to dominate the decentralized finance (DeFi) sector with approximately $45 billion in total value locked (TVL). The Ethereum ecosystem also supports a stablecoin market cap exceeding $123 billion.
Competition from other layer-one blockchains like Solana is growing. To maintain its edge, Ethereum developers are actively working on the upcoming Pectra upgrade. Ethereum Foundation core developer Tim Beiko announced that the third testnet, Hoodi, will launch by mid-April 2025 to finalize preparations for this upgrade.
For Ethereum to reverse its downward trend, it must overcome resistance at $1,900 and $1,950. A clear move above these levels could trigger a decent increase and restore market confidence in ETH’s price trajectory.
