Ethereum, a leading cryptocurrency, has witnessed a notable decline amid reduced activity and market demand.
Current Market Situation for Ethereum
Yesterday, Ethereum's price fell below the $1,800 mark, reaching a low of $1,767. The price has nearly erased all gains since October 2023 and halved from its December high of $4,000.
Market Analysis and Future Forecast
According to Matrixport's analysis, since reaching a peak of $3,668 on January 7, 2025, Ethereum has declined by 50%. On-chain activity has significantly slowed, while weak fundamentals and low demand have led to bearish market sentiment. The derivatives market is pricing in a 10% swing due to several approaching risk events.
Potential Price Drop and Its Consequences
Entering the second quarter, Ethereum and Bitcoin face challenges from macroeconomic and technical factors. A 20% drop in Ethereum could trigger over $336 million in liquidations, mainly concentrated on DeFi lending platforms, potentially speeding up the downward trend.
Amid current economic conditions and technical factors, Ethereum faces significant pressure. Watching upcoming events that could impact its market is crucial.
