Highlights
- Ethereum price could be heading for a crash, analysts warn, with predictions suggesting a drop to the $1,250 support level.
- The unrealized profit ratio among Ethereum whales has fallen to bear market levels, indicating tough conditions for holders.
- Technical indicators show persistent bearish trends, but there may be a chance for the Ethereum price reversal despite the negative sentiment.
Ethereum price is facing significant selling pressure from its previous all-time high supply zone. Meanwhile, Bitcoin surged to a new all-time high of $109,000, showcasing impressive momentum throughout 2024. This led to a downtrend for Ethereum in 2025, also.
The sell-off intensified in February 2025 when the ETH price broke below the 200-day EMA, falling under the $3,000 mark.
This decline was largely driven by widespread market pessimism following actions taken by Donald Trump.
In fact, February was a challenging month for the entire crypto sector, with the sell-off continuing into early March.
Consequently, the Ethereum price has dipped below its November 2024 lows and is now trading beneath key 20-day, 50-day, and 200-day EMA bands.
Despite this bearish trend, a liquidity grab candle might be in order, indicating a potential bullish reversal.
However, the momentum remains weak, raising uncertainty about ETH’s ability to break through the $2,500 resistance level. Moreover, Ethereum whale yields are also declining.
Analysts have even begun predicting a crash, suggesting the price could plummet to the $1,250 support level. Keep reading to know if the Ethereum price will crash further or if a reversal is on the horizon.
Ethereum Price Heading Into a Crash?
Recent price movements for Ethereum (ETH) have raised concerns among market analysts about potential weakness.
As of the latest update, the Ethereum price was trading at $2,240, reflecting a modest 3% increase after a recent drop.
However, analysts are getting increasingly wary, suggesting that the likelihood of a crash is growing due to insufficient momentum. One notable analyst, Ali Martinez, pointed out that the Ethereum price is nearing critical levels.
With its value falling below key support thresholds, he warns that it could be at risk of testing the $1,250 mark in the coming weeks.
ETH Whale Investors’ Unrealized Returns Fall to Bear Market Levels
The unrealized profit ratio among Ethereum whales has plummeted to levels similar to that of the previous bear market, signaling a challenging time for the cryptocurrency sector and for ETH price.
Currently, Ethereum price is navigating a tough phase, with the ETH/BTC ratio continuing to decline amid a wave of fear, uncertainty, and doubt (FUD) coupled with complex price movements.
This situation indicates that many whales find their positions at profit levels comparable to those seen during the bear market, despite the Ethereum price being nearly double what it was then.
Notably, the number of Ethereum whales holding between 1,000 and 10,000 ETH has even slipped into a negative unrealized profit ratio.
This trend creates a difficult environment for ETH holders, as the market sentiment remains shaky and uncertain.
Technical Indications for Ethereum Price
Technical indicators are currently predicting further downward price movement for Ethereum, reinforcing bearish trends among investors.
The Ethereum price is facing resistance at its current levels, which may hinder any significant uptrend and maintain downward pressure, also.
A recent analysis of the Awesome Oscillator (AO) reveals persistent bearishness. The negative AO reading confirms that downward momentum is gaining strength, aligning with the Ethereum price action.
SImilarly, the market conditions suggest that ETH price may continue to decline, as sellers currently dominate the landscape, intensifying the bearish trend.
However, despite this bearish outlook, there is potential for the AO to turn positive, signaling a shift in momentum that could lead to a larger price reversal.
Additionally, while the MACD histogram indicates increasing bearishness, the Chaikin Money Flow shows rising money inflows, and the RSI remains above oversold territory.
This suggests that, despite the prevailing bearish sentiment, there may still be a chance for the ETH price rise.
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.
