While crypto enthusiasts were busy planning their Lamborghini purchases, Ethereum crashed hard to the $2,000 support level on March 4, 2025. The second-largest cryptocurrency plummeted 23% in just one week, with 9% of that drop happening in the last 24 hours. Trading at $2,093, ETH is now testing a 16-month low from November 2023. So much for “to the moon.” More like to the basement.
The crash didn’t happen in a vacuum. Macro-economic pressures and global trade tensions have rattled markets. Large ETH “whales” dumped massive holdings, while Ethereum ETFs reported net outflows of $12.1 million on March 3 alone. This selling pressure was amplified by the recent double-top pattern on the weekly chart. Bitcoin also tumbled below $90,000, dragging the entire crypto market down with it. Not exactly a confidence booster.
Technical indicators look grim. A death cross appeared on the MACD line, signaling continued downward momentum. ETH is trading below both its 50-day and 200-day moving averages. The RSI sits at 34.71—not yet oversold, meaning there’s still room to fall. Market sentiment is currently leaning toward extreme caution amid the increasing volatility. Yikes.
Technical charts show Ethereum’s death cross forming as price languishes below key moving averages with room to fall further.
Market sentiment has turned decidedly bearish. The Fear & Greed index reads a terrifying 15, squarely in “Extreme Fear” territory. With 26 indicators flashing bearish signals and only 3 showing bullish forecasts, traders are bracing for impact. DeFi investors who were attracted by high APY rates are now facing the harsh reality that greater yields almost always come with proportionally greater risks.
The $2,000 psychological level represents immediate support. If that breaks, $1,800 and $1,500 are the next major support zones. Some analysts even suggest a possible drop to $1,200 if panic selling intensifies. Not what hodlers want to hear.
On-chain metrics aren’t helping either. ETH supply on centralized exchanges hit a 12-month high, with 16.2 million ETH sitting ready to be sold. Trading volume spiked 30% for the ETHA ETF, suggesting increased volatility.
Long-term investors still point to President Trump’s pledge to include ETH in U.S. crypto reserves and ongoing ecosystem development. But for now, the picture isn’t pretty. Ethereum’s freefall might not be over.
