Key insights:
- Ethereum price dipped to $1,996, raising fears of a potential drop to $1,000.
- ETH’s RSI is at its lowest since 2022, when it saw a 60% price decline.
- Ethereum ETFs see major outflows, adding to the bearish pressure on ETH price.
Ethereum price is facing heavy volatility, signaling a bearish trend. The price dipped below $2,000 before rebounding to $2,218. Analysts predict ETH price could drop to $1,000 if the current trends persist.
Ethereum Price Fall Below $2,000 Raises Concerns
Ethereum price declined below $2,000 for the first time in more than a year, raising concerns for further plunge. Crypto analyst Jessen Olson also hinted that ETH will likely continue to slide further. The price fell to $1,996 and then rose to $2,218 but the overall tone remains bearish.
On-chain data presents a negative outlook for Ethereum price. The weekly RSI stands at 35.84, its lowest level since 2022. For instance, the last time the value of RSI was at this level, ETH shed about 60% of its overall worth, thus raising fears of the same all over again.
The price of ETH went below $2,200, leading to the breakout of the parallel trading channel. According to Olson, ETH’s failure to recover may lead it to the range of $1,600. This bearish outlook is mainly contributed by weak buying pressure coupled with high market uncertainty.
Analyst Highlights Bearish Patterns
In the weekly chart, Ethereum price formed a triple-top pattern, which is bearish in its implications for the cryptocurrency. Olson pointed out that similar cycles have led to sharp decline in prices of stocks in the market. Hence, if the demand remains so low, Ethereum price may drop by 60% to $1,000 or slightly below.
The key support level for Ethereum price is $2,100. If it fails to hold this support, Olson predicts a further correction to $1,600. However, if Ethereum price breaks above $2,300–$2,400, a recovery toward $2,500+ is possible.
According to Olson, both weak buying pressure and institutional selling could push Ethereum prices down further. It remains very volatile, and the traders are still not willing to invest long-term in it.
Ethereum Faces Worst Q1 CommissionSince 2024
Ethereum’s performance in Q1 2025 has been disappointing, marking its worst quarter since 2024. Since reaching a yearly high of $3,300, ETH has lost nearly 40% of its value. Olson describes this as a serious warning sign for the asset’s future.
Institutional investors have started reducing their exposure to Ethereum. US Ethereum ETFs have recorded massive outflows, further weakening market confidence. ETHA shares have also declined by 38.59% since the beginning of the year.
Ethereum’s expected inclusion in the US Crypto Strategic Reserve failed to provide the expected boost. Olson believes that weak institutional demand and high volatility continue to weigh on the market.
Is Ethereum Price Entering an Undervalued Zone?
Despite this, some analysts believe that it remains bullish for Ethereum because the crypto asset is poised to head lower. Crypto analyst Venturefounder claims that ETH is heading to the undervaluation zone. Based on historical patterns, a significant bounce back can be expected after this correction is over.
Key resistance remains at $2,300–$2,400, while support is near $2,100. If Ethereum breaks above resistance, it could move toward $2,500. However, Olson warns that failure to hold $2,200 could push ETH toward $1,600 or lower.
Disclaimer
In this article, the views and opinions stated by the author or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
