Why is Ethereum’s Price Going Down Today? How Low Could it Go?
Ethereum, the second-biggest cryptocurrency, is having some price troubles. As of early March 2025, its price has dropped to around $2,000, which is the lowest it’s been since November 2023[1]. This isn’t just happening randomly; there are several reasons why Ethereum’s price is going down.
Economic Climate and Trade Tensions
One big reason is the global economic situation. There are tensions between countries over trade, especially because of policies from the U.S. under President Trump. These tensions make investors worried, and when traditional markets do badly, cryptocurrencies often suffer too[1].
Big Sales and Whale Activity
Another important factor is when big holders, or “whales,” sell a lot of their Ethereum. On-chain data shows that the amount of Ethereum on centralized exchanges hit a 12-month high in early February, which means many big players were selling[1]. Also, there have been massive liquidations of long positions on leveraged markets, with Ethereum longs making up $168 million of that[1].
Technical Problems and Bearish Signs
Technical analysis also shows that Ethereum’s price might drop even more, possibly to $1,945 or even $1,200, if things don’t change[1]. The Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) show that people are still feeling bearish about Ethereum.
Competition and Network Challenges
Ethereum has to compete with other blockchain platforms like Solana, which can handle transactions faster and cheaper. Also, the rise of Layer-2 solutions has shifted some activity away from Ethereum’s base layer, which reduces the demand for ETH in some cases[1]. Even though Ethereum’s shift to proof-of-stake with “The Merge” was supposed to make the supply go down, the supply has actually increased by 0.37% since April 2024, which has made investors less confident[1].
Recent Market Changes
In the past few weeks, Ethereum’s price has been going up and down a lot. It might go up by 14% one day and then drop by 15% the next[1]. This is partly because of market-wide downturns and increased sell-side liquidity[4]. The steady increase in ETH’s circulating supply, with 66,350 ETH coins added in the past 30 days, has also put downward pressure on the price[4].
Navigating the Volatile Crypto World
In short, Ethereum’s price is going down because of a mix of macroeconomic pressures, big sales, technical problems, and increased competition. As the crypto market keeps changing, investors need to stay alert and adapt to new conditions. We can’t say for sure if Ethereum’s price will drop even more, but understanding these factors can help investors make better decisions.
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Sources:
– TradingView
– BeInCrypto