The crypto market crash plunges Ethereum (ETH) 15% to revisit $2,300 levels. Amid the crash, the silver linings shine bright and tease a potential to buy at discount prices. Will this downfall record a quick V-shaped reversal in ETH prices?
By Vishal Dixit
Edited by Julia Sakovich
Updated
3 mins read
Another bullish failure in Ethereum ETH $1 819 24h volatility: 0.1% Market cap: $219.47 B Vol. 24h: $9.58 B breakout attempt follows through a steep correction. The Ethereum price trend is trading at a 3-month low price and a 40% discount within a bearish pattern.
Amid the increased fear in the market, analysts are projecting reversal possibilities from critical levels. Or, is a downfall inevitable?
In the daily chart, the ETH price trend surfaces a massive downfall at play. Within a falling wedge pattern, Ethereum has plunged from its previous swing high near $4,000 by nearly 40%.
Photo: TradingView
Currently, it is trading at $2,410, with an intraday drop of 4.18%. This comes as a bearish continuation of the 10% crash last night.
With the two bearish engulfing candles, Ethereum has broken below its February consolidation range, signaling renewed bearish pressure. Furthermore, it has nearly retested the lower support trendline, with a 24-hour low at $2,398.
Amid the increased selling pressure, the 100 and 200 EMA lines are on the verge of giving a bearish crossover. Furthermore, the daily RSI line has now taken a quick turnaround from the halfway line, nearing the oversold boundary.
While the lower price rejection in the channel hints at a potential comeback, the broader market sentiment threatens a breakdown for a steeper correction.
Highlighting the silver linings in the current market conditions, Kate young Ju, an Altcoin Data Analyst, has pointed out key bullish factors for Ethereum. Based on the analyst’s tweet, whales are accumulating Ethereum.
Live Dashboard 👇https://t.co/A8XiFUZhpD
— Kate The Alt (@kate_young_ju) February 25, 2025
The cost basis for accumulating addresses has decreased to $2,199, while the current market price is near $2,400. Furthermore, the addresses holding 10,000 to 100,000 ETH have grown by 24% over the past year. This is mostly fueled by inflows from wallets holding less than 1,000 ETH.
Adding more to the bullish sentiments, Ki Young Ju, the founder and CEO of CryptoQuant, has highlighted some more key factors. The most notable one is that no significant selling pressure emerged after the last private hack.
Some bullish thoughts on $ETH:
1/ No significant sell pressure post-Bybit hack. On-chain and market data remain neutral. Exchange selling takes time, and OTC offloads barely affect the price.
2/ Ethereum holds 56% of the stablecoin market cap. With Trump easing crypto regs,… https://t.co/y6EbavQzFf
— Ki Young Ju (@ki_young_ju) February 25, 2025
Furthermore, Ethereum holds more than 50% of the stablecoin market cap. This could benefit from potential pro-crypto regulatory shifts in Donald Trump’s second term.
With more firms entering the crypto space, the demand for Ethereum-based stablecoins and smart contracts is likely to surge in 2025. Finally, the approval of spot ETFs has provided regulatory optimism. Thus, Ki Young Ju expects Ethereum to start a bullish rally in 2025.
Despite multiple failed attempts to trigger an altcoin season, broader market sentiment remains cautiously optimistic. Although bearish momentum dominates the market for now, supporting tailwinds for Ethereum could likely fuel a breakout rally once the broader market stabilizes.
One of the most critical support levels for #Ethereum $ETH now sits at $2,300! pic.twitter.com/8QmbIyXCTG
— Ali (@ali_charts) February 25, 2025
Until then, Ali Martinez, a crypto analyst, has highlighted the $2,300 support level as a key demand zone. Ethereum must hold $2,300 to avoid further decline to $2,000. On the bullish front, a reversal rally within the falling channel will likely test the overhead trendline near the $2,800 mark.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Vishal, a Bachelor of Science graduate, began his journey in the crypto space during the 2021 bull run and has since navigated the subsequent market winter. With a strong technical background, he is dedicated to delivering insightful articles rich in technical details, empowering readers to make well-informed decisions.
