Ethereum Plunges 32% in February: Bearish Trend Continues
Ethereum’s Steep Decline: February and March Performance Analysis
Ethereum extended its decline, off 32.2% in February. Bearish sentiment gained traction in March, with ETHUSD down over 16% since the start of the month.
The ETH price has averaged $2,866 YTD.
White House Crypto Summit: Expectations vs. Reality
Investors were let down to a large extend by the outcome of the March 7 cryptocurrency summit hosted by the White House.
Crypto watchers expected the Trump administration’s cryptocurrency reserve to include five coins - Bitcoin, Ethereum, XRP, Solana, and Cardano, implying purchases on the open market using federal funds.
In reality, the roadmap calls for the accumulation of confiscated crypto assets, which will not alter the market equilibrium.
Comparing Current Market Conditions to Early-2024 Bull Run
Experts are comparing the current crypto market environment with the early-2024 bull run after the rollout of Bitcoin spot ETFs.
The upsurge was then followed by a sharp downward reversal. Notably, a number of cryptocurrencies have still been success stories in Q1 2024.
Similarly, bullish sentiment prevailed across the board after Donald Trump’s presidential victory in Q4 2024.
BTC printed large gains on the year, while ETH advanced modestly.
In the absence of a price-supportive news flow, a steep downturn could be in the cards for cryptocurrencies over the coming weeks.
Technical Analysis: ETHUSD’s Bearish Outlook
The technical picture for ETHUSD looks bearish. On the daily chart, the current channel points south, meaning that the downtrend will likely gain impetus.
That said, the chance of a rebound remains in play since ETHUSD has deviated markedly from its 200-day MA.
Under this scenario, the price action could retrace towards the $2,200-2,300 range.
In any case, it is still too soon to look for a reversal of the downtrend before the price breaks above $2,900.
Should the bulls fail to muster a rebound, the longer weekly timeframe indicates support near $1,530, near local lows seen from September to October 2023.
