Ethereum plummeted to a gut-wrenching $2,035 on Monday, marking its lowest point in 16 months. The second-largest cryptocurrency has now tanked 50% from its December peak of $4,000, leaving investors shell-shocked and portfolios bleeding.
Seriously, when was the last time we saw ETH this low? November 2023. Feel old yet?
Ethereum at 16-month lows? November 2023 feels like ancient history in crypto time.
The broader crypto market isn’t doing any better. A staggering $400 billion has vanished since Sunday. Poof. Gone. The ETH/BTC ratio has crashed to a five-year low, adding salt to Ethereum holders’ wounds. Technical analysts are having a field day with this mess.
“One of the worst charts” is how Arete Capital’s McKenna described Ethereum’s current position. Yeah, no kidding. The monthly chart shows an ominous double-top formation, and analyst Nebraskangooner isn’t mincing words—predicting a further collapse to $1,200.
Dana Marlane goes even further, suggesting $1,000 could be in the cards. Ouch.
Exchange data paints an equally grim picture. ETH supply on centralized exchanges has hit a 12-month high. Translation? Everyone’s rushing for the exits. Over $165 million in long positions got liquidated in just 12 hours. That’s a lot of crushed dreams.
The Fear & Greed index currently sits at 15—”Extreme Fear” territory. Polymarket bettors are giving 76% odds that ETH will hit $1,900 by month-end. Spoiler alert: it’s already below that.
What’s behind this carnage? Waning institutional interest, for one. Ether spot ETFs saw $335 million in outflows last week alone.
Add global trade tensions and large-scale liquidations to the mix, and you’ve got a perfect storm. The recent market turmoil reflects a pronounced shift towards risk-off trading strategies across multiple asset classes, including stocks and oil.
Could Ethereum really drop to $1,200? History suggests it’s possible. The last similar low in late 2022 saw ETH around $1,100.
With 10.33 million wallets holding 63.43 million ETH at risk and 90% of indicators flashing bearish signals, this rollercoaster ride is far from over. This pattern follows the classic bear market phases where increased selling pressure coincides with diminishing buying interest. Technical analysis suggests a potential bounce might occur at the crucial support level of $2,355, though current metrics indicate continued downward momentum.
