FameEX Hot Topics | The Bull Market Overlooks ETH – Is a Rebound on the Horizon?

On March 4, Ethereum dropped to a new yearly low of $1,996, marking its lowest value since November 2023. The sharp decline resulted in approximately $100 million worth of ETH liquidations within 24 hours, while futures open interest (OI) across all exchanges fell by 10.31%. This significant downturn raises concerns about Ethereum’s short-term price stability and market sentiment.

Despite the decline, Ethereum’s upcoming Pectra upgrade, deployed on the Sepolia testnet on March 5, has sparked mixed reactions in the crypto community. Gabriel Halm, a research analyst at IntoTheBlock, suggested that the upgrade could potentially ease ETH’s selling pressure. However, the market remains uncertain, with investors closely monitoring its impact on Ethereum’s long-term growth and network efficiency.

Ethereum’s price has experienced a drastic 50% decline over the past 78 days, from December 1, 2024, to March 4, 2025. This sharp drop, more typical of lower-cap cryptocurrencies, has erased over $250 billion from Ethereum’s market capitalization. The prolonged downtrend has shaken investor confidence, as Ethereum’s once-strong market position now faces increasing volatility and uncertainty.

Investor sentiment has also taken a hit, with data from IntoTheBlock revealing that only 26% of all ETH addresses holding 36.92 million ETH remain in profit. Meanwhile, a staggering 70% of addresses are “out of the money,” meaning they are holding ETH at a loss, while just 4.46% are at breakeven. These figures highlight the extent of Ethereum’s recent downturn and the growing financial strain on its investors.

From a technical perspective, Ethereum’s weekly close below a 980-day uptrend, which dates back to June 2022, signals a potential long-term trend reversal. The relative strength index (RSI) has also plummeted to multi-year lows, reinforcing the bearish market structure. However, this extreme RSI level could indicate a weakening in selling pressure, potentially leading to short-term relief rallies.

Disclaimer: The information provided in this section is for reference only and does not represent any investment advice or the official views of FameEX.