Ethereum plunged to a dismal $2,073 this week, hitting its lowest point since November 2023. The second-largest cryptocurrency by market cap suffered a brutal 15% drop in just 24 hours, wiping out weekend gains and leaving investors scrambling. Not exactly the moon trip crypto bros had been promising on Twitter.
Ethereum’s plunge to $2,073 crushed investors’ dreams of Lambos, leaving crypto Twitter influencers awkwardly explaining why the moon mission failed.
The digital asset’s market cap crumbled by over 13% to $252.89 billion, with nearly $165 million in long positions liquidated in half a day. Ouch. For perspective, ETH is now down a whopping 50% from its November 2024 peak of $4,088. So much for “number go up” technology.
Multiple factors contributed to this bloodbath. Macro-economic pressures, trade tensions, and waning institutional interest all played their part. ETF outflows tell the story – Ethereum ETFs recorded a staggering $335 million exodus last week alone. Institutions aren’t buying the dip. They’re running for the hills.
The technical picture looks equally grim. ETH is trading below both its 50-day and 200-day moving averages, with the critical $2,000 psychological barrier now in serious jeopardy. If that level breaks, $1,885.20 becomes the next target. Technical analysts have identified even deeper support levels at $1,540 corresponding to lows from the second half of 2023. The drop in market cap reflects how market sentiment analysis can reveal changing investor confidence beyond mere price movements.
The market’s Fear & Greed index sits at 15 – “Extreme Fear” territory. A new bearish trend line has emerged, indicating further selling pressure could be on the horizon. Shocking.
Polymarket bettors are placing their chips on further pain, with a 76% probability of ETH hitting $1,900 by month-end. Some analysts even predict a potential 60% crash based on chart patterns. That would put Ethereum below $1,200. Not exactly Lambo money.
Even President Trump’s crypto reserve announcement provided only temporary relief. The broader economic outlook doesn’t help – Atlanta Fed’s GDPNow index forecasts -2.8% growth for Q1 2025. Rising CEX balances suggest more selling pressure ahead.
For long-term HODLers who bought at the November 2021 all-time high of $4,867.17, this represents a gut-wrenching 57% drawdown. Down bad doesn’t begin to cover it.
