Ethereum Drops 30% Below $2,000 After Trump's Tweet
2min read Ethereum (ETH) has experienced a significant decline, falling below the $2,000 level, which had been a key support point throughout most of 2024. The cryptocurrency is now trading around $1,904, marking a 30% decrease since a tweet from Eric Trump suggested it was “a great time to add ETH.” This price movement has been characterized by high volatility, with ETH swinging between a low of $1,760.94 and a high of $2,006.69 within just 24 hours, creating challenging trading conditions for investors.
This drop is not merely a price fluctuation; Ethereum has fallen below its realized price of approximately $2,058 for the first time in two years. The realized price represents the average price at which ETH holders purchased their coins. When the market price drops below this level, it indicates that the average investor is holding at a loss. According to data from Glassnode, the Market Value to Realized Value (MVRV) ratio has decreased to 0.93, suggesting that Ethereum investors are experiencing an average unrealized loss of 7%. This situation typically leads traders to hold their coins rather than selling at a loss, creating a lack of selling pressure but also reducing buying activity due to investor hesitation.
Data from Lookonchain shows that Ethereum is experiencing notable outflows. In a single day, a net 16,179 ETH (worth about $30 million) left exchanges. This suggests that even institutional investors are becoming more cautious about their Ethereum holdings. Despite these outflows, fidelity still maintains a substantial position of 422,325 ETH ($782.57 million), indicating a shift in market sentiment.
Technical analysis reveals that Ethereum is facing strong resistance at several key levels. There is a bearish trend line with resistance at $1,890 on the hourly chart. The next major resistance level sits near $1,950, coinciding with the 50% Fibonacci retracement level of the recent downward movement. Breaking above this could open the path toward $2,000. If Ethereum fails to clear the $1,890 resistance, analysts expect another decline, with support levels positioned at $1,845, $1,800, and $1,750. According to analyst Ted Pillows, Ethereum is likely heading toward the $1,600–$1,800 range, an area that has historically been an important support zone for ETH price action.
The declining price has severely impacted investor profitability. CryptoRank data shows that only 47% of ETH holders are currently in profit, compared to much higher percentages when ETH traded above $3,500. The sell-off is triggering liquidations among leveraged traders. A major Ethereum investor was at risk of liquidation on 67,675 ETH ($121.8 million) when prices fell below $1,800. Despite attempting to avoid liquidation by depositing additional collateral, the investor reportedly faced a massive liquidation event as prices continued to decline.
Not all perspectives are negative. Trader Tardigrade noted that ETH has reached a monthly oversold condition on the Stochastic indicator, an event that occurs approximately every three years. Historically, these oversold levels have marked major bottoms followed by strong recoveries. If this pattern repeats, Ethereum could be preparing for a significant rebound. Ethereum co-founder Joe Lubin maintains optimism about the token’s future. Despite current market challenges, he reportedly stated he has “perhaps never been more bullish” on Ethereum’s prospects.
