Ethereum is faring far worse than the rest of the crypto market today as it falls below previous levels of support.
Crypto markets have lost more than 12% or almost $400 billion since the Sunday peak, and one of the largest losers has been Ethereum.
ETH prices crashed to their lowest levels in 16 months, plunging 15% to $2,035 during early trading in Asia on Tuesday morning. The last time ETH traded below $2,000 was in November 2023, as the asset was slowly thawing from crypto winter.
Ethereum has now returned to bear market levels and has dumped 50% since it tapped $4,000 in early December 2024.
ETH Death Predicted
Analyst ‘Nebraskangooner’ looked at the monthly timeframe chart and identified a double-top formation before predicting that prices would break down to the $1,200 level. This would send ETH back to bear market lows from late 2022 when it bottomed out at around $1,100.
Analyst Dana Marlane commented that Ethereum has broken its uptrend and “appears to have confirmed a double top that could take price back to $1,000.”
The ETH angst was shared among other analysts. “Ethereum may genuinely be one of the worst charts I have ever seen,” said Arete Capital managing partner McKenna.
The ‘Anonymous Crypto Predictions’ feed said that ETH needed to close above the 200-week moving average as it did last week. This long-term trend indicator is currently around the $2,500 level, and ETH is well below that.
Additionally, the ETH/BTC ratio, or price of ether in terms of bitcoin, fell to a five-year low of 0.024 this week as the asset tanked.
Flight to Risk-Off
Many were questioning why crypto was crashing in such a bullish environment in the United States following years of being persecuted under the Biden administration.
The Kobeissi Letter explained that the real driver here is the global move towards the risk-off trade and assets.
“As trade war tensions rise and economic policy uncertainty broadens, ALL risky assets are falling. This was seen in stocks, crypto and oil prices, which all fell sharply today.”
Moreover, Bitcoin is no longer seen as a store of value, having decoupled from gold, which hit an all-time high in late February. When Bitcoin falls, the digital lemmings follow, and Ethereum has been the first off the cliff.