On March 4, Ethereum's native token, Ether, fell to an annual low of $1,996, marking the lowest value for this altcoin since November 2023. During that 24-hour period, approximately $100 million in Ethereum positions were liquidated, and the open interest (OI) for ETH futures across all exchanges dropped by 10.31%.
Ethereum 1-Day Price Chart. Source: Cointelegraph/TradingView
Is the price of Ether a once-in-a-generation entry point, or is there no hope for a rebound?
This second-largest cryptocurrency has sparked differing opinions within the crypto industry. Ethereum's Pectra upgrade was deployed on the Sepolia testnet on March 5, and IntoTheBlock research analyst Gabriel Halm believes this could alleviate recent selling pressure on ETH. Earlier this week, Halm stated:
"While the upcoming Pectra upgrade for Ethereum may not immediately trigger a price increase, it marks an important step forward in the ongoing improvements within the Ethereum ecosystem."
Similarly, cryptocurrency analyst Louie compared Ethereum's current bearish predicament to Bitcoin's in 2023. This analyst suggested that both assets exhibit similar price structures, market sentiment, and catalysts, which could ultimately allow ETH to replicate Bitcoin's bullish breakout trend from 2023.
Comparison Chart of Ethereum and Bitcoin. Source: X.com
In contrast, market analyst Matthew Hyland indicated that Ethereum may already be in a bear market. Given that Ethereum has objectively been in a downtrend for 357 days, Hyland believes there is no correlation between Bitcoin and Ethereum in the current market. This analyst stated:
"Until a year ago, everything moved up and down together; now the situation has become more complex."
Additionally, this analyst mentioned that the price bottom for ETH could outline the beginning of the next cycle.
Meanwhile, the confirmed double top pattern on the weekly and monthly charts increases the likelihood of this altcoin experiencing a deeper correction.
Cryptocurrency commentator Nebraskangooner told his 379,900 followers that based on this pattern, the calculated breakout target price is approximately $1,200, which is 42% lower than ETH's current price.
Only 26% of Ethereum addresses are in profit
Between December 1, 2024, and March 4, 2025, the price of Ethereum dropped 50% in just 78 days. While such a significant pullback is common in low-market-cap crypto assets, ETH saw its market cap evaporate by over $250 billion during this period.
This sharp bearish reversal has undoubtedly affected investors, as data from IntoTheBlock shows that only 26% of all addresses holding 36.92 million ETH are in profit. Shockingly, 70% of addresses are in a "loss" state, with only 4.46% of addresses at breakeven.
Active Addresses by Profitability. Source: IntoTheBlock
From a technical perspective, Ethereum's weekly closing price is below a 980-day uptrend line that can be traced back to the last cycle's low in June 2022. A break below this uptrend line indicates a reversal of the long-term trend, which could serve as a warning signal for bulls.
However, this altcoin has rebounded significantly in the past 24 hours, jumping 12% from its recent low of $1,996 to over $2,242.
Ethereum 1-Week Price Chart. Source: Cointelegraph/TradingView
The Relative Strength Index (RSI) has also dropped to a multi-year low, further confirming the bearish nature of Ethereum's long-term market structure. However, this could also indicate a reduction in selling pressure in the short term, potentially triggering a rebound.
Related: Ethereum Price Hovers Below $2,200, Analysis of Underlying Reasons
This article does not contain investment advice or recommendations. Every investment and trading action carries risks, and readers should conduct their own research when making decisions.
免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。
