Ethereum’s ($ETH) price has come under substantial pressure over recent months and has yielded heated debate among investors and analysts over the cryptocurrency’s next likely move as it approaches key support levels.
Since December, the price of Ethereum has fallen 57% from its December peak of $4,100 to around $1,750 today. The Ethereum price drop has boosted fear among investors, with many wringing their hands over the virtual currency’s next potential price moves as both the cryptocurrency market and the stock market overall appear set to continue to trade in a risk-off mode.
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Investor Sentiment Turns Bearish
Ethereum’s price drop has created a market awash in fear, and this fear has done something one usually can’t do—affect investor behavior—quite visibly. Take, for instance, the number of addresses holding more than 10,000 ETH (often called addresses with large equity). This count, that just a month ago seemed to be stable, has decided to take the express route downward. We now have just 919 such addresses—80 (or 8.0%) fewer than at the same time last month.
The offloading of more than 130,000 ETH by large whale investors has further worsened the selling. This sizeable amount has not only sparked a recent wave of sales from other whale investors but has also raised concerns about the kind of selling we might see if these buyers have lost confidence in Ethereum. Meanwhile, the mainstream institutional investing route into crypto—spot Ethereum ETFs—has seen $760 million in recent sales. Bitwise Asset Management, which manages one of the few already-approved Ethereum ETFs, has seen its assets drop from $130 million in July to $63 million now.
Is it time to buy #Ethereum $ETH after the recent correction?
Let's dive in! 🧵👇
— Ali (@ali_charts) March 22, 2025
Continued Selling Pressure and Market Indicators
The current selling pressure is evidenced by the amount of Ethereum moving onto exchanges. Investors seem to be moving onto exchanges well over 100,000 ETH, which typically signals that they’re preparing to sell. This continued inflow of Ethereum onto exchanges highlights the persistent bearish sentiment around Ethereum and suggests that the market may not be ready to reverse its downward trend just yet.
Ethereum faces additional downside risk, according to technical indicators. It has broken from an ascending triangle on the 3-day chart, which usually signals a price increase coming that’s not far in the future. These are some of the most reliable trading formations. However, in this case, it is telling us that Ethereum is more likely to decline in price and is seeing increased selling pressure.
Ethereum is being eyed for potential price targets as low as $1,000, but it also hit below a parallel channel formation on the daily chart. In terms of reliable price formations, a breakdown below a formation on the daily chart usually tells you the prices are going to go down further.
The Pricing Bands analysis for Ethereum also emphasizes that $1,440 is a vital downside target. Should Ethereum’s price drop to this point, it would signify a considerable loss in valuation from its present standing and might very well incite a further wave of selling in the already troubled market. Everyone seems to be keeping a close watch on these levels to ascertain if not just Ethereum but the entire market has found a floor or is simply swinging up before heading back down.
Support and Resistance Levels to Watch
Even with the bearish outlook, there are significant support levels that can help stabilize Ethereum’s price in the short term. One of the most crucial supports is at $1,887, and it’s based on cost-basis distribution. If this holds, it can really pave the way for a recovery in Ethereum that would have a decent shot at reversing this recent downtrend. On the other hand, if this level fails—and remember, this is a support that a lot of people are looking at—then it opens the door for a continuation toward lower price targets, including $1,440, $1,250, and potentially $1,000.
Conversely, Ethereum confronts strong headwinds in the $2,250 to $2,610 range. Should Ethereum blast through this range with volume that’s chalked up to friendly hands, then it would illustrate a nice shift in sentiment. A clear break above this resistance zone would act as a bullish signal; it should put more buying hands on deck and lead to a nice rally that brings Ethereum back into an uptrend.
Conclusion: Is Now the Time to Buy?
Under current market conditions, Ethereum seems to be at considerable risk of downside. Sustained selling pressure from retail and institutional investors, as well as many technical indicators, suggest that Ethereum is heading toward lower price targets. Indeed, in the near term, Ethereum looks likely to see further price declines. If you are a holder of Ethereum, you will need to pay close attention to some key support levels that have been outlined, including $1,887, $1,440, and $1,250. If Ethereum tumbles below any of these levels, the signs point toward considerable further downside being on the way.
If Ethereum can stay above the current support levels or blast through the resistance at $2,250 to $2,610, the current bearish outlook could be proved wrong, and a range-bound Ethereum could claw its way back to better days. For would-be buyers, the current market might present an opportunity to load up at secondary prices, but the current volatility and uncertainty make this a riskier proposition.
In the end, whether you purchase Ethereum comes down to your risk tolerance and your convictions regarding its long-term prospects. The token could easily slide further in the very near term, but we think its fundamental growth story remains intact and that upcoming network upgrades could propel it to a much better “market position” sometime “soon.” As always, do your own due diligence and consider both the potential rewards and the risks before hitting that “buy” button.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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