While crypto enthusiasts were still nursing their bullish hopes, Ethereum plummeted to the dreaded $2,000 mark on March 4, 2025. The 15% nosedive in just 24 hours wiped out all post-election gains and left traders staring at their screens in disbelief. Not a pretty sight.
The numbers tell a brutal story. ETH is down a staggering 32.61% over the past month and currently limps along at $2,093—a far cry from the $3,537 price tag it boasted a year ago. Remember that all-time high of $4,867 back in November 2021? Yeah, those days are long gone.
So what’s behind this disaster? Whales. Big players dumping their holdings and leaving smaller investors holding the bag. The Coinbase Premium Index turned negative, signaling weak institutional demand. Meanwhile, exchange reserves are climbing—never a good sign. It means more sellers than buyers. Duh.
The technical picture looks equally grim. A double-top pattern has formed on the 7-day chart, and breaking below $2,100 confirms what bears have been saying all along. The Chaikin Money Flow Index has practically collapsed, dropping from 0.32 to nearly zero.
ETF markets aren’t helping either. Total net outflows hit $12.1 million on March 3, with ETHA ETF alone seeing $16.1 million in withdrawals. The few inflows, like ETHW’s $4 million, barely made a dent. This selling pressure was intensified by Ethereum ETFs experiencing outflows exceeding $51 million in recent days.
Market sentiment? Pure fear. The Fear & Greed index sits at a dismal 15, screaming “Extreme Fear.” Social sentiment hasn’t been this low in a year, with 26 indicators flashing red against just 3 showing any bullish hope. The current situation mirrors historical bear market patterns where prices drop at least 20% from recent highs and negative sentiment dominates trading activity.
The $2,000 psychological support level is now the line in the sand. If it breaks, expect a quick trip to $1,885 or even $1,645. Some analysts predict a rebound to $2,334 by March 9, but honestly, with sentiment this bad, who’s betting on that?
