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Qadir AK
Qadir AK
Author
Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.
- Apr 02, 2025 08:42 UTC
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Ethereum Price Sinks 56% – Key Support Levels to Watch
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ETH $ 1,801.57 (-1.00%) 
Ethereum (ETH) has experienced a significant price decline, impacted by macroeconomic uncertainties and reduced institutional demand.
Whale activity and on-chain data indicate a bearish trend, with notable sales and decreased engagement.
Technical analysis suggests ETH is at a critical support level, with potential for either a bullish reversal or further decline.
Ethereum (ETH) is taking a beating, and the numbers tell the story. It has seen a steep decline in recent months, largely due to uncertainty caused by ongoing trade wars and economic instability.
The popular altcoin, which has a fully diluted valuation of about $225 billion and an average 24-hour trading volume of $14.8 billion, has dropped over 56% since early December. As of April 2, during early Western market hours, ETH is trading around $1,869.
With institutional investors pulling back and on-chain data painting a concerning picture, is Ethereum headed for deeper losses?
Let’s break down what’s happening and what could be next for ETH.
Ethereum Network Suffers Low Demand
The overall demand for Ether, especially by institutional investors, has remained significantly low in the past few months. For instance, the U.S. spot Ether ETF recorded a net cash outflow of about $403 million.
According to on-chain data from Santiment, Ether whales, with an account balance of between 100k and 1 million, have sold around 760 ETH in the past two weeks to currently hold about 18.81 million coins.
Meanwhile, the Ethereum network has recorded a 63 percent decline in whale activity since February 25.
Technicals Point to a Bearish Trend
Ethereum’s price has remained under pressure after consistently closing below the important 200-week Simple Moving Average (SMA). From a technical perspective, ETH/USD has been retesting a key support level above $1,800 for the past four weeks, which could determine the next price movement.
If Ethereum fails to hold this level, it could lead to a broader decline in the altcoin market. Breaking below the final rising weekly logarithmic trendline would be a major bearish signal.
Can Ethereum Stage a Comeback?
Despite the current downtrend, there are signs that a recovery could be on the horizon. The weekly Relative Strength Index (RSI) is in oversold territory, suggesting that a strong rebound is possible.
Additionally, analysts expect the crypto market to perform better in Q2 2025 after a weak first quarter. Whether Ethereum can bounce back or face further losses will depend on how market conditions evolve in the coming weeks.
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FAQs
Ethereum’s price has dropped due to low institutional demand, high ETF outflows, and bearish technical indicators.
Institutional investors are pulling funds, with U.S. spot Ether ETFs seeing $403M in outflows and whale activity declining by 63%.
Experts predict a stronger crypto market in Q2 2025, but ETH must regain key technical levels for a bullish reversal.
Yes 
No 
