Why Ethereum Price is Down Today? Analysts Warn of Worst Q1 in ETH History

Bitcoin and major cryptocurrencies fell on Tuesday as enthusiasm around the proposed US Crypto Strategic Reserve weakened. The decline came at a time of rising global uncertainty, with President Trump confirming that tariffs on Canada, Mexico, and China would take effect within hours.

Ethereum (ETH) has fallen to levels last seen in November 2023, impacted by rising volatility due to Trump’s trade war threats. In the past 24 hours, ETH has dropped 15%, bringing its market cap down by over 13% to $252.89 billion. After briefly spiking above $2,500 following the US crypto reserve announcement, Ethereum has now fallen to $2,050, erasing all its weekend gains.

How much lower can it go?

Why Is Ether Underperforming?

Ethereum’s price has been declining for the past three months, struggling against Bitcoin and facing weak investor sentiment. Several factors have contributed to this downturn, including lower institutional demand and broader macroeconomic concerns such as inflation, stock market weakness, and trade uncertainty. These have made investors more cautious, reducing their appetite for risk.

Ethereum’s open interest has declined 10.8% to $18.8 billion, while 24-hour liquidations have surged to $209 million, according to Coinglass data. Meanwhile, prediction markets on Polymarket show a 76% probability that ETH will drop to $1,900 by the end of the month.

Ethereum ETFs See Major Outflows

Ethereum ETFs saw heavy outflows last week, totaling $335 million. BlackRock’s iShares Ethereum Trust (ETHA) was hit the hardest, with over $164 million in withdrawals since February 24. ETHA shares have also fallen sharply, dropping 38.6% since the start of 2025 to $16.09, erasing all post-election gains.

The ETFs are now down 40% since their launch eight months ago and 49% below their highs in December 2023. “The worst part for investors is that ETH still has a long way to fall,” noted Peter Schiff. 

Ethereum on Track for Its Worst Q1 Ever?

With ETH already down 36% in 2025, this could become its worst first quarter on record. Analyst Venturefounder pointed out that if ETH drops to $1,600, it would mark the worst Q1 decline in Ethereum’s history, surpassing the losses seen in Q1 2018 after the previous cycle’s peak.

Ethereum’s initial support is at $2,020, with stronger support near $2,000. A drop below this level could push ETH toward $1,880, with further losses possibly taking it to $1,750 and key support at $1,640.

A Buying Opportunity? Some Analysts Think So

Despite Ethereum’s sharp drop to $2,000, some market analysts see this as a buying opportunity for long-term investors. As volatility continues, ETH’s current price levels may attract renewed interest from those betting on a future recovery.

Whether this dip marks the end of the sell-off or just the beginning of more pain is the question looming over investors.