On March 5, 2025, the cryptocurrency market saw significant fluctuations, particularly with Ethereum testing the $2,000 psychological level and Bitcoin stabilizing around $87,000. The overall crypto market has experienced a sharp correction of nearly 13% within just 36 hours, resulting in liquidations of roughly $1 billion across the market.
During this turbulence, Ethereum particularly faced liquidations amounting to approximately $2.84 million, inclusive of $2.60 million from long positions. On the same day, Ethereum (ETH) was trading at about $2,173, reflecting a 4.60% increase over the past 24 hours after touching lows of around $33,422,252 and reaching highs near $36,602,277. Market capitalization for Ethereum was roughly $262.41 billion as data indicated, with daily trading volumes down by 17% at $28.51 billion.
On March 4, Ethereum illustrated strong bearish signals with its falling channel pattern, as it marked a significant correction of 14.73% and tallied its intraday decline at 3.19%, pushing prices to around $2,078. Just prior, the price had failed to surmount the pivotal resistance level of $2,548.
Analyst Ali Martinez underscored the major resistance Ethereum faces at about $2,400, noting 2.41 million investors currently holding 62.68 million ETH. The recent market dynamics also hint at mounting downward pressure as Ethereum battles to maintain its support level at $2,000.
Adding to the narrative, institutional support for Ethereum has diminished significantly, with net outflows from Ethereum Spot ETFs totaling $12.10 million on March 3. Interestingly, investment giant BlackRock sold $16.06 million worth of ETH, correlatively Bitwise reported inflows of only $3.96 million. Over the preceding eight days, Ethereum ETFs recorded cumulative outflows approaching $369.45 million, indicating substantial investor hesitance.
Challenges for Ethereum investors continue as the price is projected to hit significant Fibonacci retracement levels, with estimates possibly guiding it down to around $1,740, according to historical patterns. Martinez also indicated potential for even sharper corrections possibly toward $1,250 should bearish momentum persist.
Meanwhile, Bitcoin, which was attempting to stabilize above the support level of $82,000, witnessed substantial market impacts. It registered declines of about 13% from its local peak of $95,000 following former President Trump's announcement on strategic cryptocurrency reserves over the weekend.
Throughout the market, investor sentiment remained cautious as liquidations, particularly within Bitcoin, surged past $390 million, making up nearly 40% of total liquidations. Amid heightened tensions, altcoins faced drastic withdrawals, with over $400 billion extracted following import tariffs introduced by Trump targeting Mexico and Canada.
On the same day, hot topics included the fluctuation of Solana’s memecoins experiencing losses exceeding 20%, along with broader categories like Made-in-USA coins reflecting declines of about 14.75% or about $63 billion overall.
Despite the downturn, some momentum was seen with Pi Network, the mobile mining-focused cryptocurrency, trading at approximately $1.74, marking 2.3% gains and earning it noticeable safety among top coins within these turbulent times.
On the contrary, traditional finance plunged as Nasdaq filed for documentation with the SEC to include the Hedera spot ETF amid calls for enhanced regulatory measures for cryptocurrencies and altcoin investments. This step signifies important strides toward mainstream adoption and institutional inclusion.
Simultaneously, the crypto trading platform Flowdesk secured $102 million for expansion efforts, aiming to diversify services and bolster operations amid dynamic market shifts. They plan to improve the international trading experience by opening offices and hiring personnel, linking their growth strategy directly to institutional interest.
While the markets remain volatile and unpredictable—as exemplified by the fluctuatingsUb, Ethereum struggles within its looming bearish momentum, and Bitcoin's resistance efforts continue—investors are advised to proceed with caution and engage only with thorough research and prudent asset management practices. Amid such market churning, accurate assessments and timely strategies are increasingly necessary for cryptocurrency participants.
Future investor engagement will undeniably hinge on the stability of key support levels across major cryptocurrencies and the potential impacts of global regulatory developments alongside economic pressures. The market remains one where astute surveillance of pricing trends and regulatory announcements could yield significant insights for asset management moving forward.