Why Ethereum Price Is Down? Key Support Levels Break as Market Bleeds

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Bitcoin is soaring, but Ethereum? Not so much.

While Bitcoin (BTC) follows gold’s parabolic rise, Ethereum (ETH) remains stuck in a persistent downtrend. The second-largest cryptocurrency, valued at around $228 billion with a daily trading volume of $19 billion, has been in a multi-week correction.

With key support levels breaking and investor sentiment weakening, the big question is – how much lower can Ethereum go?

Let’s break it down.

Ethereum Loses Key Support Levels

Since U.S. President Donald Trump’s second inauguration, Ethereum has lost two major support levels—$3,200 and $2,200. In the past three weeks, ETH has dropped over 33%, trading near $1,891 as of early Friday, March 14, in the European session.

Meanwhile, the broader financial market is under pressure. The S&P 500 and other major stock indexes have been sliding due to uncertainty from U.S. tariff wars. This has led long-term investors to shift towards safer assets like gold and stablecoins.

Ethereum Holders Grow Cautious

On-chain data from Glassnode suggests growing fear among long-term Ethereum holders. At the same time, U.S. spot Ether ETFs are seeing consistent cash outflows, marking their third straight week of withdrawals. On Thursday alone, net outflows reached about $73 million.

Is Ethereum Oversold? A Rebound Could Be Ahead

Ethereum has struggled to break past the $4,000 resistance level over the past year, facing continued bearish pressure. From a technical perspective, ETH/USD appears heavily oversold compared to Bitcoin.

For Ethereum to avoid further declines toward $1,500, it must hold its current support level. Additionally, the ETH/BTC pair has been testing a crucial support level around 0.023. If this level holds, it could help restore bullish sentiment in the near future.

Ethereum Developers Push Forward

Despite the price slump, Ethereum remains the leading blockchain in decentralized finance (DeFi), with around $45 billion in total value locked (TVL) and a stablecoin market cap exceeding $123 billion. However, competition from other layer-one (L1) blockchains like Solana (SOL) is growing.

To stay ahead, Ethereum developers are working on the upcoming Pectra upgrade. On Thursday, Ethereum Foundation core developer Tim Beiko announced that the third testnet, Hoodi, will launch by mid-April 2025 to help finalize preparations for the upgrade.

Ethereum may be down, but the race for blockchain dominance is far from over.

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