Ethereum Plummets 10% as Bitcoin Collapse Triggers Sell-Off

Ethereum (ETH) has experienced a significant sell-off, with prices crashing below $2,000 for the third time this year. This downturn is largely attributed to the sudden collapse of Bitcoin (BTC) below $80,000 over the weekend, leading to the liquidation of many large investors, or "whales." The upcoming blood moon lunar eclipse on the night of March 13, 14 2025, adds an element of uncertainty to the market, as it could either catalyze a bullish reversal or further exacerbate the downtrend.

Historically, lunar cycles have been observed to influence market volatility. For instance, stock returns tend to be lower around full moons compared to new moons. In the context of cryptocurrencies, full moons have signaled bullish reversals for Bitcoin. Analysts like Crypto Damus have noted that eclipses can create extreme emotions and sentiment, potentially leading to panic sell-offs, especially when combined with astrological factors such as the opposition to the fear planet Saturn and Venus retrograde.

Despite the potential for heightened volatility, a further crash in crypto markets is considered unlikely, particularly if Bitcoin stabilizes between $78K and $82K. In such a scenario, the blood moon lunar eclipse could act as a catalyst for a bullish reversal in Ethereum's price. From a technical standpoint, Ethereum has formed a bullish swing failure pattern, which has triggered a 10% bounce, bringing the price to around $1,900 with potential for further upside.

However, if Bitcoin remains weak and Ethereum fails to overcome the $2,100 to $2,200 resistance zone, it could signal underlying weakness. In this case, the blood moon lunar eclipse might exacerbate the bearish trend, leading to a panic sell-off and a potential drop to $1,500 or even $1,000. Conversely, if Ethereum recovers above $2,200, it could set up a higher high, confirming a shift in market structure favoring bulls. This optimistic structure would require Ethereum to create a higher low, potentially above $2,000, which could trigger another leg up to $2,500 or even the $3,000 psychological level.

The upcoming blood moon lunar eclipse introduces uncertainty