Ethereum has encountered a significant downturn, with the price of its native token, Ether, falling to $1,996 on March 4, the lowest since November 2023. This decline triggered the liquidation of $100 million in Ethereum positions and led to a 10.31% reduction in futures open interest. The technical market patterns suggest a possible 42% price drop, as a confirmed double-top pattern indicates further bearish momentum.
The broader crypto community is divided on Ethereum’s future. The recent Pectra upgrade on the Sepolia testnet has been noted as a progressive step, yet experts like Gabriel Halm believe it may not cause an immediate price increase. Louie, a crypto analyst, draws parallels between Ethereum’s current state and Bitcoin’s 2023 conditions, suggesting potential for a similar rebound.
Contrastingly, market analyst Matthew Hyland considers Ethereum to be entrenched in a bear market, noting a 357-day decline, and indicates a divergence from Bitcoin’s trajectory. Other technical indicators reinforce the bear scenario, highlighting a 50% price reduction over recent months.
Nonetheless, Ethereum has experienced a 12% rebound, rising to $2,242 following its recent low—a move possibly influenced by a drop in the relative strength index, which hints at easing selling pressure in the short term. However, only 26% of Ethereum addresses remain profitable, with a significant portion experiencing losses amid these fluctuations.
With these developments, analysts continue to debate whether Ethereum is heading towards a generational buying opportunity or remains a risky bet in a fluctuating market landscape.
