Tron founder Justin Sun is inquiring with the crypto community about the current state of Ethereum amid significant liquidations totaling $2.1 billion over the past two weeks.
On Monday, Sun highlighted the network’s high-leverage trading issues, expressing concern that these would lead to losses for decentralized finance protocols utilizing the blockchain.
As of Thursday’s early Asian trading session, ETH was priced at $1,880, marking a 51.63% decline over the last three months, during which it peaked at $3,888 in December’s bull run. The crypto has dropped 30.6% in 30 days and nearly 18% in the past week, according to Coingecko.
Market reactions to Ethereum’s turmoil
Sun’s query drew various responses within the crypto community, including a contentious reply from Alexander, founder of the AI crypto finance system PostFiat. He criticized Ethereum’s failure to sustain meaningful transaction growth since its 2017 peak.
Alexander condemned the network’s lack of deflationary status post-transition from proof-of-work (PoW) to proof-of-stake (PoS), asserting that the most utilized aspects of the blockchain, such as Arbitrum (ARB) and Base, remain either highly inflationary or centralized.
“So begs the question…. What is the point of the chain?” he remarked, adding that it serves the same purpose as other blockchains: moving tether and ‘storing value.’
In a March 13 X post, CryptoQuant CEO Ki Young Ju highlighted a chart displaying significant selling pressure on Ethereum over the past three months, noting that $1.8 billion worth of ETH exited exchanges last week—the largest outflow since December 2022.
According to the chart, the last time ETH had a positive 30-day moving average was February 26, coinciding with Bitcoin’s price nearing $82,000. The coin’s 24-hour Coinbase premium index has also been in the red for the past week, indicating weakened buying activity from US traders.
Ethereum’s trading volume has plummeted by 38.17% to $36.82 billion, while open interest (OI) in futures has decreased by 2.61% to $18.05 billion, suggesting more traders are closing positions than opening new ones. Furthermore, options volume has dropped 7.43% to $663.71 million, but options open interest increased by 2.17% to $5.77 billion, indicating rising demand for long-term derivatives as traders await ETH’s direction.
Future outlook for Ethereum
Ethereum’s current price action appears predominantly bearish, with bulls gradually losing ground to bears, further dampening the crypto’s price. In the last 24 hours, ETH futures liquidations amounted to $43.12 million, according to Coinglass, comprising $26.94 million in long liquidations and $16.18 million from shorts, reflecting a market lacking clear direction.
Analysts have proposed two possible scenarios for Ethereum’s next move. A bearish breakdown could see ETH dip below $1,440, potentially leading to declines towards the $1,000 mark. Conversely, a recovery surpassing resistance levels around $1,960 could generate positive momentum, pushing the coin towards $2,200.
Indicators like the Relative Strength Index (RSI) at 32.1 and Stochastic Oscillator (Stoch) at 25.1 are approaching oversold territory, reinforcing the bearish sentiment. Failing to maintain above the $1,750 psychological support could heighten selling pressure, while a daily close beneath $1,700 could invalidate consolidation efforts, accelerating a downward trajectory.
A trader on social media noted a historical ETH 3-year Stochastic RSI trend suggesting that previous oversold levels preceded significant upward rallies.
> HISTORIC ETH SIGNAL TRIGGERED!
> Ethereum’s 3-year Stochastic RSI hits oversold levels.
> Every time this happened, a massive rally followed! pic.twitter.com/XZdtIw5OL7 — Merlijn The Trader (@MerlijnTrader) March 12, 2025
However, this prediction faced skepticism from a commenter who pointed out the anomaly of the current situation occurring during a mid-bull run, which historically has never happened. “That’s really bad. Not supposed to happen, my guy.”
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