Ethereum Drops Below $2K

• Ethereum falls below $2,000, leading to significant losses for institutional investors.
• Market indicators remain bearish, yet long-term holders continue to accumulate ETH.
• A 21-day window in March will determine if ETH can break its four-month losing streak.

Ethereum has once again dipped below the $2,000 mark, increasing strain on investors, particularly institutional players like World Liberty Fi, which is linked to Donald Trump. This fund has suffered the most, with a loss of $110 million in Ethereum holdings due to the latest downturn. As March progresses, its outcome might set a critical trend, with the potential for a rare four-month losing streak looming.

> Super bearish on $ETH
>
> Range high sweep: SFP + sharp reversal
> Range low sweep: no SFP, no reversal for now
>
> I think we will target the lower equal lows soon pic.twitter.com/P5U01D65qz
> — Victorious (@victorious__5) March 10, 2025

Institutional Investors Struggle as Ethereum Declines

This recent sell-off has rattled significant funds, with World Liberty Financial reporting a 6.15% daily dip. The fund’s portfolio, primarily consisting of Ethereum, staked ETH, and wrapped Bitcoin, accounts for over 65% of its total assets. A further decline could intensify their hesitance. Current market indicators reflect a bearish sentiment, with the Relative Strength Index at approximately 31, indicating oversold conditions. The MACD remains negative, revealing ongoing downward pressure, while On-Balance Volume has flattened, presenting weak buying interest. Although a price bounce is possible, Ethereum must reclaim the $2,100 level to shift the current momentum.

Ethereum Faces a 21-Day Countdown

Amidst these challenges, long-term ETH holders show resilience. Last week, over $1.8 billion worth of Ethereum exited exchanges, with large investors continuing to accumulate, signaling faith in future value increases. This trend is reminiscent of previous recovery phases, where substantial outflows led to price upturns.

March is pivotal. A losing streak of four consecutive months hasn’t occurred since 2018. February recorded a notable 46.28% recovery, yet subsequent momentum appears to be waning. Historical analysis indicates a rebound could be incoming, as March has historically produced an average return of 20.03%.

A robust end to the month could restore investor confidence, while another negative month may induce fear in retail traders. Ethereum finds itself at a crucial juncture; the next 21 days will determine whether a resurgence begins or the downtrend persists.