
Ethereum's price has plummeted, triggered by a major hack and broader market downturn, with analysts predicting potential drops below $1,000.
The Federal Reserve's monetary policy is a key factor, with continued tight policy potentially driving ETH further down.
Some analysts see Ethereum as oversold and anticipate a potential recovery if it holds above $2,000 and market conditions improve.
The crypto market has been in trouble this February, with Bitcoin plunging to its 2021 lows at $86K and Ethereum facing heavy selling pressure. ETH dropped below $2,500 after a massive $1.5 billion hack on Bybit, allegedly carried out by North Koreaโs Lazarus Group, triggering a 25% price crash. Now, analysts, including Benjamin Cowen, warn that Ethereum could fall even furtherโpossibly below $1,000โbefore any real recovery.
Ethereumโs Decline Shows No Signs of Slowing
Ethereumโs price action remains bearish, with its drop below key support levels signaling a deeper correction. Analysts point to past capitulation events in April and August, suggesting ETH could follow a similar pattern and bottom out under $1,000. While sharp declines have historically led to strong rebounds, a recovery will depend on broader market conditions.
The Federal Reserveโs stance on quantitative easing (QE) is a key factor in Ethereumโs outlook. Right now, there are no signs the Fed will inject liquidity into the markets, which could make ETHโs decline worse. If tight monetary policy continues, Ethereum could drop below $1,500 and potentially test $1,200โor even fall under $1,000โbefore stabilizing.
Is Ethereum Oversold?
A shift in the Fedโs policy could be the spark Ethereum needs for a rebound. Historically, ETH has gained momentum after QE events, often outperforming Bitcoin. If the Fed introduces stimulus measures by March 2025, Ethereum could see a strong recovery.
Crypto analyst TraderPA believes ETH is oversold and is currently trading within its largest historical order block. Despite the bearish market, he remains optimistic, suggesting Ethereum could be due for a bounce based on chart patterns.
For now, Ethereum remains under pressure, and analysts warn the worst may not be over. However, if ETH holds above $2,000 as market conditions improve, a recovery toward the $3,500โ$4,000 range is still possible.
A deeper drop could set the stage for a stronger comebackโbut how much more pain is left?
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FAQs
Ethereum is dropping due to a $1.5B Bybit hack and bearish market trends, with analysts warning of a potential fall below $1,000.
As per our Ethereum price prediction 2025, the ETH price could reach a maximum of $5,925.
As per our latest ETH price analysis, the Ethereum could reach a maximum price of $123,678.
By 2050, a single Ethereum price could go as high as $255,282.