• Ethereum faces bearish pressure as liquidations and ETF outflows surge, key support at $2,000 becomes crucial.
• ETH needs to break above $2,250 to regain bullish momentum, while a drop below $2,000 could trigger further sell-offs.

Ethereum [ETH]  was trading at $2,139.60, at press time, after declining 1.59% over the past 24 hours.

Despite this drop, Ethereum’s market activity remains robust despite the drop, with a market cap of $258.04 billion. Trading volume increased by 136%, signaling heightened investor interest.

ETH has recovered from earlier lows, hinting at a potential momentum shift. However, Ethereum is under significant bearish pressure, erasing all gains since the November 2024 U.S. Presidential election.

Analysts caution that ETH is breaking down from a parallel channel, a pattern often linked to further downside risks. If Ethereum fails to sustain its key support levels, its price may face a sharp decline.

Analysts predict that a loss of current support could result in a 75% price drop, potentially bringing ETH’s value down to $1,250. This scenario underscores the fragility of the market, making Ethereum’s next moves critical for traders and investors alike.

Ethereum liquidations surge

The Ethereum market experienced significant turbulence, with over $230 million in long positions liquidated. Ali Martinez noted that this event caused a major shakeout of overleveraged traders, highlighting the market’s extreme volatility.

The sharp price drop to $2,025 underscores the scale of sell-offs across multiple exchanges.

Institutional interest in Ethereum has also declined. In the past week, spot Ethereum ETFs saw outflows exceeding $120 million, reflecting reduced confidence among major investors.

This combination of liquidations and decreasing institutional interest points to a bearish trend that could continue to pressure Ethereum’s price.

Ethereum’s market activity declines 

Ethereum’s Open Interest (OI) has dropped by 2.14%, reducing it to $19.12 billion, according to Coinglass. This decline signals weaker speculative activity among futures traders and may result in reduced market volatility unless fresh interest emerges.

Historically, a drop in OI suggests lower trader participation, potentially leading to further price consolidation.

Additionally, Ethereum ETFs saw over $120 million in outflows last week, reflecting increased market uncertainty as institutional investors reduced their ETH exposure.

The ETH netflows chart (March 2–9, 2025) revealed fluctuating activity across exchanges. Early in the week, large outflows indicated investors moving ETH off exchanges, typically a bullish sign.

Mid-week, inflows rose, suggesting traders were preparing for potential sell-offs. By week’s end, netflows stabilized, indicating neutral market sentiment.

Ethereum faces volatility with crucial support at $2,000

Ethereum is in a consolidation phase, with technical indicators pointing to potential movement in either direction. At the time of writing, the Relative Strength Index (RSI) was at 46.98, reflecting neutral market sentiment.

Meanwhile, the MACD remained negative, indicating persistent bearish momentum. However, a MACD crossover could signal a trend reversal if buying pressure increases.

Ethereum needs to break above the $2,250 resistance level to regain bullish momentum, potentially sparking a rally to $2,400–$2,500. However, if rejected at this level, ETH could retest the $2,050 support.

A drop below $2,000 might push Ethereum down to $1,850. Conversely, a rebound above $2,250 could pave the way for a recovery toward $2,700–$3,000. These levels are crucial in the current volatile market.

 

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