Ethereum has hit another rough patch, struggling to gain upward momentum as it languishes below key resistance levels for over a year. The second-largest cryptocurrency by market capitalization has made several attempts to rally but has repeatedly faltered, raising alarms among analysts and investors alike.
Recent price action has underscored Ethereum’s fragility, with technical analyst Tony “The Bull” Severino noting its persistent rejection from important resistance levels. Severino highlighted on social media, "This feels like it sends a message — resistance won’t be broken," pointing out the crypto's failure to touch the quarterly Parabolic SAR for over a year, which reinforces the bearish trend. The Parabolic SAR, commonly employed to assess trend direction, signals Ethereum is currently trapped within a prolonged downward movement.
Compounding these issues, Ethereum has faced continual rejections at the quarterly SuperTrend dynamic resistance. This consistent failure to breach resistance means buyers have been unable to regain dominance, contributing to the cryptocurrency’s weak bullish outlook.
Recent price struggles reveal Ethereum is currently trading below $2,200 and is precariously close to losing the all-important $2,100 support level. A downturn past this threshold could turn dire. The quarterly Bollinger Bands, which have tracked Ethereum's price since February 2022, now places the upper band at $4,190 and the lower band at $2,098. Should Ethereum close the month of March 2025 below $2,100, it would breach this lower band, potentially jeopardizing longstanding support and paving the way for even steeper declines.
Market sentiment surrounding Ethereum is at one of its lowest points this year. Currently trading at $2,178, Ethereum only saw modest gains of 2.2% over the past 24 hours, having briefly dipped to $2,120. With looming uncertainty, the coming weeks will be pivotal for determining whether Ethereum can recover or if it will succumb to additional downward pressure.
Concerningly, Ether (ETH) prices recently plunged nearly 20% leading up to March 9, marking its biggest weekly drop since November 2022. This decline not only breaks below the bullish trendline initiated following the June 2022 Terra crash, but it also puts the near three-year bullish trend on shaky ground.
The decisive breakdown raises the specter of more significant losses, with expert commentators pointing toward support around the September-October 2023 lows, identified near the $1,500 mark. The simplicity of trading continues to visualize how traders allocate their funds, and breaking such long-standing trendlines often signals where prices are heading next.
Analysts stress the importance of the breach, as it indicates dwindling demand which is overshadowed by sellers overpowering buyers. Omkar Godbole, Co-Managing Editor at CoinDesk, elaborated on the ramifications of this week's trading, stating, "The decisive breakdown means ether's near three-year-long bullish trend has likely ended." This sentiment captures the grim outlook many traders now face.
Adding to the gloom, Ether's recent drop translated to loss of dual support, vanishing both above the trendline and the key psychological level of about $2,100. The next focus for traders is pegged at $1,500, far beneath recent highs of around $2,523 which Ethereum would need to meet for any bullish reversal.
The market conditions surrounding Ethereum reflect broader economic uncertainties and increased selling pressure, factors which continue to plague the cryptocurrency space. Analysts caution Ethereum faces pivotal moments; without reestablishing itself near current levels, the digital asset risks slipping toward even graver declines.
With technical indicators flashing red and market sentiment faltering, Ethereum’s fight against resistance has entered uncertain territory. If the cryptocurrency cannot negotiate these challenging political waters, its path forward could involve downsizing to lower support levels as it struggles to regain the favorable conditions previously seen.