Ethereum’s price has plunged below $1,500, indicating a potential crisis as it nears an all-time low. The ETH/BTC pair has also significantly declined, marking the longest losing streak since 2018. Technical analysis suggests a bearish breakdown is probable, potentially leading to further price declines influenced by competition from Layer-2 networks, stakeholder liquidation, and waning market demand.
The Ethereum price is experiencing a significant decline, nearing a critical low point, having dropped below USD 1,500. The ETH/BTC pair is where the real volatility is occurring, slumping to 0.02 BTC and reaching its lowest point since February 2020. This represents a staggering drop of over 78% from its peak in 2022, indicating a precarious market situation for Ethereum.
From a technical analysis perspective, Ethereum’s monthly chart shows it is entering a crisis situation. The ETH/BTC pair has seen five consecutive months of decline, the longest streak since 2018. The price remains under the 50-month and 25-month moving averages, with bears firmly in control. The Average Directional Index (ADX) has risen to 28, suggesting intensifying bearish market momentum.
Moreover, the ETH/BTC pair is starting to form an inverted cup and handle pattern, highlighted in red on the chart. This pattern often signals a continuation of downward movement, indicating a potential bearish breakdown is imminent. Such a breakdown would be confirmed if the price falls below the cup’s lower edge at 0.01644, as this indicates a deeper decline is likely. The measurement suggests a potential fall to $0.00187, which aligns with Ethereum’s all-time low.
Several factors contribute to the ongoing implosion of Ethereum’s price. Firstly, the emergence of Layer-2 (L2) networks built on Ethereum, like Base and Arbitrum, has hindered Ethereum due to their faster and cheaper alternatives. Secondly, Ethereum stakers have been liquidating their assets, with recent data indicating two consecutive days of significant outflows, which is concerning for the most staked asset in crypto.
Lastly, Ethereum is losing market share to competitive blockchain networks such as Solana and BNB, exacerbated by weakened demand from Wall Street and a downturn in spot ETH Exchange-Traded Funds (ETFs) during the past months.
