Ethereum crashed hard this week, plunging below the critical $2,000 mark for the first time since late 2023. The second-largest cryptocurrency tumbled to $1,904 by March 12, marking a steep 30% decline from its March 1 high of $2,150. Ouch. The break below the psychologically important $2,000 level has traders sweating bullets.
What’s behind the nosedive? Blame the Trump administration – at least partially. Bearish macro outlooks and recession fears have investors running for the exits. The Fed isn’t exactly rushing to the rescue either. No liquidity boost in sight, folks. Even the US Bitcoin reserve announcement failed to provide any meaningful support. Crypto markets move together, and right now, they’re moving down.
Market panic intensifies as crypto plunges amid Trump-era bearishness and zero Fed rescue in sight.
Technical analysts are having a field day with this one. The breach of long-term support at $2,000 isn’t just a random dip – it’s significant. Next stop could be $1,500 if things get uglier. With ETH trading below major moving averages, the charts aren’t telling a pretty story. The RSI shows oversold conditions, which might offer a brief reprieve, but the $1,700-$1,800 range looms as a realistic target. Trading consistently below the Ichimoku Cloud since January 25 further confirms the bearish sentiment gripping the market. These market conditions align perfectly with the typical bear market characteristics that include sharp price drops and increased selling pressure as buying interest diminishes.
On-chain data confirms the panic. Over 100,000 ETH flooded exchanges as holders rushed to cash out. Active addresses jumped 17% in just 24 hours. Only 47% of ETH holders are in profit now – the rest are underwater or breaking even. Not exactly a confidence booster.
Big money is watching closely. Fidelity still holds a massive 422,325 ETH stash, while BlackRock and Trump insiders maintain their long-term bullish stance. But institutional caution is growing by the day.
Could ETH bounce back? Maybe. The cryptocurrency needs to reclaim $1,950 and then $2,000 quickly. Some analysts still predict $3,793 by month’s end, which seems wildly optimistic given current conditions. The $1,500 level represents the last line of defense before things get really ugly.
