Crypto markets have lost more than 12% or almost $400 billion since the Sunday peak, with Ethereum being one of the largest losers in this downturn. ETH prices crashed to their lowest levels in 16 months, plunging 15% to $2,035 during early trading in Asia on Tuesday morning. The last time ETH traded below $2,000 was in November 2023, as the asset was slowly thawing from the crypto winter.
Now, Ethereum has returned to bear market levels and has dumped approximately 50% since it tapped $4,000 in early December 2024.
ETH Death Predicted
Analyst ‘Nebraskangooner’ analyzed the monthly timeframe chart and identified a double-top formation, predicting a price breakdown to the $1,200 level. This scenario would potentially send ETH back to bear market lows from late 2022, where it bottomed out at around $1,100.
Monthly double top confirmed. Measured pattern breakdown target is somewhere close to $1200 https://t.co/2T4JCzBloh pic.twitter.com/mM29h3LOtI
— Nebraskangooner (@Nebraskangooner) March 4, 2025
Analyst Dana Marlane commented that Ethereum has broken its uptrend and ‘appears to have confirmed a double top that could take prices back to $1,000.’
The ETH angst is echoed by other analysts, including Arete Capital managing partner McKenna, who stated, ‘Ethereum may genuinely be one of the worst charts I have ever seen.’
Ethereum may genuinely be one of the worst charts I have ever seen. pic.twitter.com/4nOWi0ZuyH
— McKenna (@Crypto_McKenna) March 3, 2025
Additionally, the ‘Anonymous Crypto Predictions’ feed indicated that ETH needs to close above the 200-week moving average, currently around the $2,500 mark, and highlights that ETH is considerably below that benchmark.
Furthermore, the ETH/BTC ratio—reflecting the price of ether in terms of Bitcoin—fell to a five-year low of 0.024 this week as the asset experienced significant declines.
#Ethereum – The key level to watch is the 200 weekly (black line). We need to close back above that like we did last week. Expect lots of manipulation and volatility. pic.twitter.com/aIskRebYqV
— Anonymous | Crypto Predictions (@Crypto_Twittier) March 4, 2025
Many observers are questioning why crypto is crashing amid a seemingly bullish environment in the U.S., especially following years of being scrutinized under the Biden administration.
The Kobeissi Letter explained that the primary driver behind this downturn is a global shift towards risk-off assets.
“As trade war tensions rise and economic policy uncertainty broadens, ALL risky assets are falling. This was seen in stocks, crypto, and oil prices, which all fell sharply today.”
Moreover, Bitcoin is no longer regarded as a safe haven, having decoupled from gold, which reached an all-time high in late February. In times of decline, when Bitcoin falters, Ethereum has seemingly taken the largest hit, leading the charge off the cliff.
What is happening with crypto?
Crypto markets are now worth -$100 billion LESS than they were prior to the US Crypto Reserve announcement.
Over the last 24 hours, crypto has erased -$500 BILLION of market cap in a massive reversal.
Here’s what you need to know.
(a thread) pic.twitter.com/xlsqsnQKKd
— The Kobeissi Letter (@KobeissiLetter) March 4, 2025
In summary, Ethereum’s recent plunge showcases a broader issue plaguing the cryptocurrency market as analysts brace for the potential of further declines. Stakeholders may need to navigate these turbulent waters with caution in the uncertain crypto landscape.
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