Ethereum Price Crash

Ethereum’s price has crashed more than 53% from its 2024 high, wiping out $255 billion in market value as its market cap fell from $482 billion to $227 billion.

Price Decline and Analyst Predictions

Ethereum (ETH) has dropped significantly due to ongoing concerns about the network. On Monday, analysts at Standard Chartered reduced their ETH price target from $10,000 to $4,000, citing a structural decline in the network.

Many Ethereum investors are facing losses during this downturn. According to data from Santiment, the percentage of the total Ethereum supply in profit has decreased to 47.6%, marking its lowest level since October 2023. Additionally, the network’s realized loss has reached its lowest in nearly two years.

Notable Trades

Despite the losses, not all Ethereum traders are losing money. CoinGlass reports that one trader made $86 million by shorting ETH on Hyperliquid. The trader executed a $143 million short trade on March 3 when Ethereum was priced at $3,000, and with 25x leverage, profited as ETH fell to $1,878 on Tuesday. The funding fee was $3.13 million, and the margin was $5.76 million. This position will be liquidated if Ethereum rebounds to $3,194.

In contrast, another trader lost $5.21 million from a long position on Ethereum, buying 18.6 ETH with 20x leverage. This trade will be liquidated if ETH decreases to $1,725.

Ethereum Price Technical Analysis

Current Trends

The technical indicators suggest that short-sellers may continue to profit, as further declines are anticipated. The daily chart indicates Ethereum is below key support at $2,135, identified as the neckline of a triple-top pattern around $4,000.

Ethereum has formed a death cross pattern, where the 50-day and 20-day moving averages crossed over in February. Currently, the coin is creating a bearish pennant pattern consisting of a long vertical line and a symmetrical triangle. As the triangle approaches its confluence point, a bearish breakout could potentially drive Ethereum down to the psychological level of $1,500, which is about 20% lower than its current price.

Conclusion

Ethereum’s market activity shows stark contrasts between profit and loss among traders amid a significant price downturn and evolving market predictions.