Ethereum Plummets 57% Below $2,000 Mark Amid Market Weakness
2min read Ethereum (ETH) has recently experienced a significant decline, falling below the $2,000 mark and reaching its lowest levels since October 2023. The cryptocurrency's price dropped as low as $1,750, marking a 57% decrease from its December 2024 high of $4,100. This sharp decline has created a challenging environment for bullish investors, as Ethereum struggles to find support amidst broader market weakness.
Ask Aime: What factors contribute to Ethereum's recent decline?
The current crypto market downturn has left Ethereum vulnerable, with investors expressing concerns about further downside risks. Macroeconomic uncertainty and bearish sentiment have dominated the market, making it difficult for Ethereum to reclaim key resistance levels. On-chain data from CryptoQuant indicates that Ethereum whales holding between 1,000 and 10,000 ETH are now officially holding at a loss for the first time since 2023. This situation could impact market sentiment and future price action, as large holders are experiencing unrealized losses.
Ethereum is currently trading below a multi-year support level, which has now turned into a strong resistance zone. The failure to reclaim the $1,900–$2,000 level has resulted in bulls losing momentum, and bearish sentiment continues to dominate the market. The broader market breakdown has been driven by rising global trade war fears and uncertainty surrounding U.S. policies. Since the U.S. elections in November 2024, macroeconomic instability and volatility have shaken both the crypto and stock markets, pushing the U.S. stock market to its lowest levels since September 2024. This has further intensified the risk-off sentiment, making it difficult for Ethereum and other major cryptocurrencies to find strong demand.
Top analyst Quinten Francois shared the ETH Whales Unrealized Profit Ratio, revealing that Ethereum whales holding 1,000–10,000 ETH are officially underwater. This suggests that even large holders are experiencing unrealized losses, potentially increasing sell pressure if market conditions fail to improve. Historically, when whales go underwater, the market tends to enter a prolonged period of uncertainty and consolidation. Whale capitulation or accumulation at these levels has significantly affected Ethereum’s price cycles.
With ETH below key levels and the market sentiment deeply bearish, the next few weeks will be crucial in determining whether Ethereum can stabilize and reclaim lost ground or if a continued breakdown is inevitable. Bulls need to regain strength quickly, or ETH could be heading for deeper losses. Ethereum is currently trading at $1,910, following massive selling pressure triggered by its loss of the critical $2,000 support level. The break below this key psychological zone has intensified bearish sentiment, leading to increased volatility and a weaker market structure.
Bulls are now attempting to reclaim the $2,000 mark as quickly as possible to stop the selling pressure and stabilize price action. A successful push above this level would signal a potential recovery phase, reducing the risk of further downside. However, ETH remains below key technical levels, and if it fails to hold current support and reclaim $2,000, the market is likely to see a continuation of the downtrend. Despite the recent decline, analysts suggest that Ethereum could experience a sharp recovery once it sets a local low. Historically, ETH has seen strong rebounds following major sell-offs, and if bulls manage to push the price back above resistance zones, a move toward higher levels could unfold quickly. The next few trading sessions will determine whether ETH can regain strength or if the downtrend will deepen further.
