A recent 10% drop in Ethereum's price has led to the testing of critical support levels. Experts suggest closely monitoring market changes in the near term.
Critical Support Levels for Ethereum Under Scrutiny
Following the recent downturn, Ethereum is currently testing a vital support level around $1,800. Technical analysts suggest there is a possibility of the price bouncing back from this level; however, if the support is broken, a greater selling pressure could ensue. Some analysts believe that if Ethereum drops below $1,000, the price could worst-case scenario fall to as low as $610.
Decline in ETF Flows and Anticipated Updates
Interest in Ethereum-based ETFs has been significantly affected by the negative market sentiment. Net inflows into ETFs exceeded $3 billion in February but have now dropped below $2.5 billion. The decreased interest from institutional investors is slowing new investment inflows, adding additional pressure on prices. Meanwhile, the Pectra upgrade, expected to enhance the Ethereum network’s performance and user experience, is set to be implemented on April 30, 2025. Experts believe the upgrade could have positive effects, but market uncertainty may persist in the short term. Additionally, the lack of innovations in the Web3 space is cited as another key factor contributing to the decline in Ethereum’s price.
Market Impact and Investor Recommendations
If Ethereum manages to maintain its current price levels, a market recovery is anticipated; otherwise, deeper corrections could occur. It is emphasized that investors should remain cautious and closely monitor market movements.
The situation with Ethereum remains unstable. Investors should watch critical support levels and be prepared for possible further market shifts.
