Ethereum Price Analysis: March 4, 2025

Ethereum (ETH), the second-largest cryptocurrency by market cap, has experienced significant price fluctuations, prompting investors to ask: Why is Ethereum price down today? As of March 4, 2025, the crypto market remains highly volatile, and Ethereum has fallen to the psychological support level of $2,000.

Why Is Ethereum Falling? ETH Price Tests November 2023 Lows

Currently, Ethereum trades at just under $2,073, after hitting a daily low of $2,000, a level not seen since November 2023. This follows a turbulent period in which the price surged by 14% on Sunday, only to plunge by 15% on Monday.

This volatility follows President Trump’s announcement of a proposed U.S. cryptocurrency reserve that would include Ethereum, expressing his fondness for the cryptocurrency. However, this brief period of euphoria quickly faded as digital assets returned to decline.

How Low Can Ethereum Go?

The $2,000 level has held for now, but if it fails, the implications could be bearish, with potential support levels identified at $1,540 and between $1,000–$1,070. A significant drop could see prices reach as low as $174, based on a double-top pattern with peaks exceeding $4,000 in 2024.

Although a sudden crash is not expected—especially with Ethereum being included in U.S. reserves—investors should remain cautious.

Ethereum Price Crash: 4 Reasons

Despite its strong fundamentals, Ethereum has faced challenges contributing to its price decline:

1. Macro-Economic Pressures and Trade Tensions

Global trade tensions, particularly U.S. policies under President Trump, have influenced the cryptocurrency market, creating a risk-off sentiment that generally weakens high-risk assets like cryptocurrencies.

2. Massive Liquidations and Whale Activity

Significant sell-offs by major holders (“whales”) have added pressure on ETH, with 16.2 million ETH on centralized exchanges, a 12-month high. Recent liquidations in leveraged markets amounted to $861 million, with ETH accounting for $168 million.

3. Technical Breakdowns and Bearish Indicators

Analysts point to bearish signals that could see ETH prices drop to $1,945 or even $1,200 without a momentum shift. Metrics like the Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) indicate persistent bearish sentiment.

4. Competition and Network Challenges

Competition from other cryptocurrencies such as Solana has become more pronounced, as they offer faster transaction speeds and lower fees. Additionally, Ethereum’s shift to proof-of-stake aimed to create a deflationary model but has led to a rise in supply since April 2024, dampening investor confidence.

Will Ethereum Go Up?

Despite the bearish reasons behind recent declines, several indicators suggest a potential rebound:
– Declining Exchange Reserves: A drop in ETH on exchanges implies reduced selling pressure.
– Institutional Interest: Long-term confidence remains strong despite recent outflows, with analysts predicting a rise to $7,000 by the end of 2025.
– Proposed Upgrades: Improvements such as EIP-7781 are expected to enhance network performance and restore Ethereum’s deflationary status.

For recovery, Ethereum must break through resistance levels such as $2,800 and navigate macroeconomic headwinds. Investors should stay updated on market trends for ETH’s future trajectory.

Ethereum News, FAQ

What is happening to Ethereum?

Ethereum’s price is volatile, recently dropping to around $2,000 due to macroeconomic pressures and market liquidations. A brief surge followed Trump’s announcement, but selling pressure resumed afterward.

Is there a future for ETH?

Yes, Ethereum remains significant in the blockchain ecosystem as the leading smart contract platform. Network upgrades are forecasted to improve scalability and maintain long-term value.

Can Ethereum reach $100,000?

While reaching $100,000 is improbable in the short term, analysts project a more realistic target of $7,000 by 2025 with greater adoption and improvements.

Is ETH going to recover?

Ethereum has the potential to recover, especially if it breaks above $2,800 while addressing macroeconomic conditions and investor sentiment.

Conclusion

Investors should monitor Ethereum’s price movements and factors affecting the crypto market to make informed decisions.