Ethereum's price movement has shown a glimmer of hope recently, as it witnessed a bounce on March 11, 2025, stirring some optimism among investors.
On March 19, Ethereum's price notably outperformed Bitcoin (BTC) for a moment, suggesting a temporary shift in momentum. However, this burst of positivity has since faded, with Ethereum dropping below the significant $2,000 threshold, while Bitcoin has managed to maintain its stability. This development reinforces a long-term bearish trend between these two leading cryptocurrencies.
To put things into perspective, Ethereum reached its cycle high of $4,106 back in December 2024, but has since experienced a staggering decline, with a low of $1,759 noted just last week. The downturn has been marked by a breakdown from a 1,000-day ascending support trend line and a close below the $2,250 horizontal area during March 2025. Given these technical movements, experts are raising alarms about the cryptocurrency's future.
Victor, an analyst at CCN, had predicted last week a breakout from its resistance trend line, witnessing Ethereum briefly soaring to $2,090. Yet, the sentiment is shifting as the technical indicators continue to align with a bearish outlook. The Relative Strength Index (RSI) has dipped below 50, and the Moving Average Convergence/Divergence (MACD) has entered negative territory, reinforcing the notion that Ethereum is still on a downward trajectory.
If this bearish trend persists, the next significant support level for Ethereum is projected to be around $1,600. In light of the current technical analysis, many believe Ethereum's inability to hold onto the $2,000 price mark may set the stage for another yearly low.
To dissect the recent price action, it’s crucial to understand the patterns emerging from Ethereum's movements. Initially, the bounce observed in March 2025 was promising, suggesting a potential recovery. However, the subsequent performance has disillusioned many investors as Ethereum's price wasted no time in retracing back below $2,000 levels.
As Ethereum continues to navigate this market, the projected target, according to Fibonacci retracement levels, indicates a potential low reaching $1,550, corresponding with significant long-term horizontal support. This aligns with broader bearish sentiments creeping into the market, as more traders and investors turn cautious.
Ethereum's confirmed bearish trend suggests a continuous decline in value, as it breaks down from both long-term diagonal and horizontal support levels. Following the brief spike on March 11, the increase appears corrective rather than indicative of a sustainable upward trend.
As investors evaluate the market, the sentiment surrounding Ethereum remains cautious, with many now predicting slower momentum in the coming weeks. A significant threshold to watch out for is the wave C high of $2,070, as any increase above that is likely to invalidate the current bearish structure. However, optimism surrounding such outcomes seems distant given recent performance.
In conclusion, with the crypto market in its current state, Ethereum finds itself grappling with bearish forces and a struggle to regain its footing after its recent highs. As the market continues to unfold, traders and investors alike are left to wonder: will Ethereum be able to rise again, or is another decline imminent?