This week, Ethereum faced a significant setback, plunging to approximately $1,380 — a price point not seen since March 2023. The ongoing downtrend has raised red flags among investors, who are now questioning whether ETH’s long-term bullish outlook remains viable. The harsh market conditions, driven by persistent macroeconomic tensions and global instability, coupled with uncertainties surrounding U.S. trade and fiscal policies, have heightened investor fears.
The deterioration of sentiment across the cryptocurrency landscape is evident, and Ethereum’s price action mirrors this anxiety. After months of struggling to maintain key support levels, the dip below $1,500 has escalated concerns that a more profound correction is underway.
Nonetheless, in the midst of this market turmoil, there may be a glimmer of hope. Data from CryptoRank indicates that Ethereum is currently trading below its realized price — a rare occurrence historically linked to market bottoms and subsequent strong recovery phases.
While the near-term outlook remains uncertain, these uncommon on-chain signals might suggest that Ethereum is entering a critical accumulation zone. The upcoming days and weeks will be pivotal in determining whether this move signifies just another leg down — or the onset of a long-term reversal.
Ethereum Sinks Below Realized Price As Market Fears Amplify
Since late March, Ethereum has lost over 33% of its value, inducing deep concern among investors and analysts alike. This price plunge has brought ETH down to levels not observed in over two years, igniting panic and despair among holders who had once anticipated a breakout year for altcoins in 2025. Instead, Ethereum has come to symbolize the fragility of the market against a backdrop of a deteriorating macroeconomic landscape.
Fears surrounding trade wars, inflationary pressures, and the looming threat of a global recession are shaking financial markets to their core. In such an environment, high-risk assets like Ethereum are often among the first to feel the heat. As capital shifts away from speculative investments toward safer havens, the selloff of ETH has intensified, leading to a significant drop in investor confidence.
However, there remains a potential silver lining in the data. Esteemed crypto analyst Carl Runefelt recently noted on X that Ethereum is trading below its realized price of $2,000, a condition that historically has indicated major turning points in ETH’s price trajectory.
Runefelt emphasized a notable trend: the last instance when ETH dipped below its realized price was in March 2020, when it plummeted from $283 to $109, only to rise robustly in the subsequent months. Despite the current climate being fraught with uncertainty, these on-chain metrics suggest the potential for ETH to be entering an accumulation phase yet again.
Nevertheless, investor confidence remains delicate, and it requires a price stabilization before any meaningful bullish narrative can re-emerge. Ethereum’s forthcoming movements will prove critical in determining whether this point signifies a true market bottom — or just another waypoint downwards.
ETH Struggles Below $1,500 With No Clear Support in Sight
Ethereum is presently trading beneath the $1,500 threshold after undergoing a severe 50% decline since late February. This aggressive selloff has wiped out months of gains, plunging investors into a state of uncertainty, as ETH shows scant signs of recovery. Market sentiment is overwhelmingly bearish, and indications of a bottom remain elusive.
At this juncture, Ethereum lacks a distinct support zone. Bulls have relinquished control, and the price continues to drift lower amidst weak demand and escalating fear. For a meaningful reversal to take root, ETH must first reclaim the critical $1,850 level, which previously functioned as a key support line but now poses a significant resistance.
Until such a recovery materializes, any upward attempts are likely to face strong selling pressure. The situation could become increasingly precarious should Ethereum fall below the psychological threshold of $1,380. Breaching this level may open the floodgates for further declines toward the $1,100–$1,200 range.
Amidst ongoing macroeconomic tensions and anticipated volatility, traders and investors will carefully monitor Ethereum’s capacity to stabilize or continue its downward spiral.
Featured image from Dall-E, chart from TradingView.
