The crypto market has entered a turbulent zone, with Ethereum (ETH) experiencing a 20% drop in just three days, bringing its price around $2,100. This scenario raises questions about the stability and future prospects of one of the largest assets in the crypto world.
A Sudden Crash Under Macroeconomic Pressure
Ethereum, which seemed resilient amidst recent Bitcoin fluctuations, plummeted in the face of global economic tensions. Donald Trump's announced protectionist policy, with threats of new tariffs against China, Canada, and Mexico, has created uncertainty across all financial markets, including crypto. Deteriorating U.S. economic indicators amplified the pressure: unemployment claims surged to 242,000, a three-month high, while pending home sales fell by 4.6% in January, the largest drop on record. This situation triggered panic, exacerbated by cascading liquidations on leveraged trading platforms. Investors, seeing ETH lose its technical support levels, cut their positions, accelerating the decline. However, signals suggest the downward pressure may slow, paving the way for stabilization.
A Resilient Derivatives Market and Potential Rebound
While ETH was undergoing this correction, the derivatives market showed no widespread panic. The annual premium on Ether futures contracts is currently 7% above the spot market, compared to 6% a few days earlier. This slight rebound indicates a mitigation of selling pressure, especially below the $2,600 threshold. Moreover, the 60-day delta skew indicator, which measures the balance between call and put options, remains within a neutral range of -6% to 6%, suggesting institutional players are not panicking.
Continued Forecast: The Future of Ethereum
Several scenarios remain possible within this context. If the upward trend resumes and ETH manages to regain $2,500, the market could see a return toward $2,800 in the coming weeks. Conversely, continued macroeconomic decline could lead to a new selling wave, hindering recovery attempts. Ethereum’s stability now hinges on global economic conditions and the ability of buyers to defend critical technical levels. Ultimately, a rebound toward $2,800 is plausible, but the coming weeks will be decisive. If Ethereum can reassure investors and take advantage of the slowdown in Solana, it could regain momentum. Otherwise, an uncertain macroeconomic context and weak adoption of its Layer 2 ecosystem could hinder recovery and prolong market volatility.
Ethereum is navigating a challenging period with an uncertain future. Investors and analysts are closely watching the developments, making the coming weeks crucial for understanding the cryptocurrency's long-term prospects.
