Ethereum Price Sinks 56% – Key Support Levels to Watch

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.

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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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