TLDR
- Ethereum (ETH) price is trading below $1,920 after dropping over 33% in the past three weeks
- ETH has broken key support levels at $3,200 and $2,200, now struggling to hold around $1,891
- Technical indicators show ETH is potentially oversold, with resistance at $1,950 and support at $1,800
- Long-term investors are showing caution, with U.S. spot Ether ETFs experiencing consistent outflows
- Despite price struggles, Ethereum remains the leading blockchain in DeFi with developers working on the upcoming Pectra upgrade
Ethereum’s price has experienced a tough few weeks, dropping more than 33% since mid-February. The second-largest cryptocurrency is currently trading below $1,920 and the 100-hourly Simple Moving Average, with bears actively defending the $1,950 resistance zone.
The cryptocurrency formed a base above $1,760 and started a recovery wave similar to Bitcoin. ETH managed to clear several resistance levels including $1,820 and $1,850 in its recent bounce attempt.
Bulls pushed the price above $1,920 temporarily. This move represented a break above the 23.6% Fibonacci retracement level of the downward wave from the $2,150 swing high to the $1,752 low.
However, sellers remain active near the critical $1,950 resistance zone. A short-term bearish trend line has formed with resistance at $1,900 on the hourly chart of ETH/USD.
The next key resistance sits near the $1,950 level. This area corresponds to the 50% Fibonacci retracement level of the recent downward move from $2,150 to $1,752.
If Ethereum can break above $1,950, the next major resistance appears at $1,990. A clear move above this level could potentially send the price toward $2,050 or even higher targets like $2,120 or $2,250.
On the downside, initial support can be found near $1,845. The first major support level sits around $1,800, with further support at $1,750 if selling pressure increases.
A breakdown below $1,750 could potentially extend losses toward $1,720 or even the $1,650 support level. Technical indicators show mixed signals, with the hourly MACD gaining momentum in the bullish zone and the hourly RSI now above the 50 level.
The broader market struggles
The broader market context helps explain Ethereum’s struggles. Since Donald Trump’s second inauguration, Ethereum has lost two major support levels—$3,200 and $2,200.
This decline comes as the wider financial market faces pressure. The S&P 500 and other major stock indexes have been sliding due to uncertainty from U.S. tariff policies.
These conditions have pushed long-term investors toward safer assets like gold and stablecoins. On-chain data from Glassnode indicates growing fear among long-term Ethereum holders.
ETFs are experiencing consistent outflows
U.S. spot Ether ETFs are experiencing consistent cash outflows. These funds marked their third straight week of withdrawals, with Thursday alone seeing net outflows of approximately $73 million.
From a technical perspective, ETH/USD appears heavily oversold compared to Bitcoin. For Ethereum to avoid further declines toward $1,500, it must maintain its current support level.
Additionally, the ETH/BTC pair has been testing a crucial support level around 0.023. If this level holds, it could help restore bullish sentiment in the coming weeks.
Despite the price challenges, Ethereum maintains its position as the leading blockchain in decentralized finance. The network hosts around $45 billion in total value locked and supports a stablecoin market cap exceeding $123 billion.
Ethereum faces growing competition from other layer-one blockchains like Solana. To stay competitive, Ethereum developers are actively working on the upcoming Pectra upgrade.
Ethereum Foundation core developer Tim Beiko recently announced that the third testnet, Hoodi, will launch by mid-April 2025 to help finalize preparations for this important network upgrade.
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