TLDR
Ethereum is currently trading around $1,900 after falling from $2,000 to a low of $1,750 on March 11
Technical analysis shows ETH approaching a key downward-sloping resistance trendline on the 4-hour chart
Whales holding 10,000-100,000 ETH have increased their holdings by over 12% in early 2025
Some analysts warn ETH could drop to $1,060 if it fails to reclaim $2,500
Ethereum faces competition from Solana and layer-2 networks as network activity slows
Ethereum has experienced significant price pressure in recent weeks, dropping below the important $2,000 level to trade around $1,900. This decline has sparked mixed signals among analysts, with some pointing to technical patterns suggesting a potential recovery while others warn of further drops ahead.
The second-largest cryptocurrency by market cap reached a low of $1,750 on March 11, marking its lowest point since November 2023. This represented a steep fall from previous trading levels above $2,000.
Since hitting that low, Ethereum has rebounded to approximately $1,900. This recovery has brought ETH to a critical technical juncture, where it now tests a downward-sloping resistance trendline on the 4-hour chart.
A breakout above this resistance level could open the door for a rally toward $2,500. According to one analyst on TradingView, a confirmed move above $1,885 could serve as an entry point for traders looking to capitalize on such a breakout.
Technical Analysis
The analyst has set a potential price target of $2,596 if ETH breaks through the resistance. They also recommend a stop loss at $1,700 to manage risk in case the price gets rejected at the trendline.
An increase in trading volume would provide confirmation that Ethereum is breaking out with momentum. This technical setup has created some optimism among traders despite the broader bearish market sentiment.
While some technical analysts see hope on the charts, on-chain data tells an interesting story about investor behavior. According to data from Nansen, large Ethereum holders have been quietly accumulating coins despite the price decline.
Whales holding between 10,000 and 100,000 ETH have increased their holdings by more than 12% in early 2025. The 1,000-10,000 ETH segment has also grown their positions by about 3% year-to-date.
This accumulation by larger holders comes even as retail investors have been reducing their ETH balances. This divergence in behavior between whales and smaller holders offers an interesting contrast to the price action.
Network activity on Ethereum has slowed down lately. Median gas prices have reportedly dropped nearly 50 times since early 2024, suggesting less demand for block space on the network.
Some of this activity appears to have shifted to Solana and various layer-2 networks. This migration raises questions about Ethereum’s competitive position in the broader blockchain ecosystem.
Nansen’s report suggests Ethereum is “competing on all fronts” but risks being a “jack of all trades but master of none” when compared to Bitcoin, Solana, and Celestia. This competitive pressure adds another layer of complexity to Ethereum’s market outlook.
Not all analysts share the optimistic view about a potential recovery. Some technical analysts warn that Ethereum could drop to as low as $1,060 if it fails to reclaim the $2,500 level soon.
#Ethereum – Unbiased Analysis
ETH has one of the worst charts of all time. The price attempted to break above the range high of $4,000 three times in this cycle but failed.
On the last rejection, price broke down even below the mid-range and is also trading below the… pic.twitter.com/iXkg8THiFy
— Mags (@thescalpingpro) March 18, 2025
This bearish outlook is based on Ethereum’s failure to break the $4,000 resistance level three times in the current market cycle. Each rejection has led to further price declines, with the latest pushing ETH below its mid-range level.
The ETH/BTC trading pair has also been underperforming, indicating weakness in Ethereum’s relative strength against Bitcoin. The pair has recorded multiple breakdowns since mid-2024, with declines ranging from 13% to 25%.
Ethereum-based exchange-traded funds (ETFs) in the US have seen consistent outflows since the start of the year. In March, the net assets of spot Ether ETFs decreased by 9.8%, amounting to $2.54 billion.
For comparison, Bitcoin ETFs suffered a slight decrease of 2.35% to $35.74 billion during the same period. This difference suggests institutional fund managers may be losing interest in Ethereum compared to Bitcoin.
As of the latest data, Ethereum is trading at $1,923, which represents a 27.81% drop from the previous month. Despite maintaining a market cap of $231.96 billion, the ongoing downward trend suggests continued selling pressure.
The next few weeks will be crucial for Ethereum as it tests key technical levels. Traders are watching for either a breakout above the resistance trendline or a failure that could lead to further downside.
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