Ethereum’s price has recently slipped beneath crucial support levels, prompting a wave of speculation regarding the potential for a significant downtrend. After struggling to maintain its footing above the $2,000 mark, Ethereum is now trading below $1,880. Analysts warn that unless the cryptocurrency manages to reclaim key resistance levels in the near future, the bearish sentiment may persist and deepen.
Ethereum’s Plunge Continues as Prices Dip Deeper
The recent price trajectory for Ethereum has been troubling for investors. After failing to sustain above the $2,000 threshold, the crypto dipped below both the $1,920 and $1,880 levels, testing the waters around the $1,765 price point. Although there was a brief bounce back past the $1,800 mark, Ethereum continues to fall short of the 23.6% Fibonacci retracement level derived from its recent swing high of $2,033 and a low at $1,767.
Currently, Ethereum is trading below the 100-hourly simple moving average, and a bearish trend line presents a formidable resistance at $1,820. The inability to breach this critical resistance level could speed up the price decline, pushing bulls further back while leaving bears in control.
Key Resistance Levels Hold the Fate of Ethereum
The immediate focus for Ethereum now lies on the resistance at $1,880, identified as the 50% Fibonacci retracement level. Achieving a breakthrough at this juncture could enable Ethereum to target the $1,920 resistance level, which, if surpassed, could potentially propel the cryptocurrency back to the coveted $2,000 mark.
Chart 1 – Provided by aayushjindal, published on Trading View, March 31, 2025.
A decisive move beyond the $2,000 mark could reinvigorate bullish sentiment, opening doors for Ethereum to examine higher resistance levels at $2,050 or even $2,120. Yet, if these resistance thresholds remain unbroken, the likelihood of an exacerbated decline looms, creating a pathway for substantial losses.
Bearish Phase and Investor Fears Grow Stronger
As Ethereum continues to falter, investor fears are escalating. If Ethereum cannot cling to levels above $1,765, another critical support level is situated at $1,720. A definitive breakdown beneath this price point could lead Ethereum further down the rabbit hole, with $1,680 as the next target, and $1,650 representing the final bastion of support. A breakdown below this level would signal the onset of a longer-term bearish phase, a scenario that has the potential to unsettle long-term investors.
Crypto analyst Big Cheds has pointed out that Ethereum has already experienced a significant decline from its regional high of $3,400. If the current bearish trend persists, the next major zone of accumulation might establish itself between $1,200 and $1,300, a critical price point that has historically shown resilience in prior market cycles. This situation could signal a fundamental shift in Ethereum’s market dynamics, challenging the sentiments of long-term holders.
Long-Term Outlook for Ethereum Amid Market Volatility
The ongoing decline of Ethereum poses risks not just for ETH holders but also for the wider altcoin and DeFi landscape. As one of the foundational currencies in the cryptocurrency ecosystem, Ethereum’s struggles could indicate challenging times ahead for the industry at large. However, some experts believe that despite the short-term bearish trend, Ethereum has the potential for long-term growth. Yet, traders should remain vigilant about near-term price suppression driven by the increasing supply of ETH available on exchanges.
Final Words: Will Bulls Prevent a Major ETH Price Drop?
With the recent downturn, Ethereum’s bulls find themselves in a precarious position. To avert a steep price drop, rejuvenating momentum is crucial for reclaiming pivotal resistance levels. The cryptocurrency remains at risk of sliding further down to $1,650 or lower. Careful monitoring of price movements and broader trends in the crypto ecosystem will be essential as traders navigate this landscape of volatility.
