Since last week Ethereum has dropped by 13.8 percent and now neighborhoods $2,000 support limits. The current 35.87 weekly Relative Strength Index value hits a new low since May 2022 suggesting Ethereum may continue to drop further.
The current cryptocurrency market instability matches when US President Donald Trump started charging Canada and Mexico with trade tariffs earlier today. The market response shows a 39% chance that the United States will face a recession in 2025 according to data from Kalshi prediction platform.
The entire crypto sector reacts negatively to these matters as market value decreases from $3.7 trillion on December 14 to $2.8 trillion today. Bitcoin and Ethereum remain the worst affected major cryptocurrencies during this downturn. The market values of Bitcoin and Ethereum both decrease by 7.1% and 8.9% over the last 24 hours respectively.
Ethereum Struggles Since 2021 Peak
Following its peak in November 2021 Ethereum failed to regain its strength whereas Bitcoin hit multiple all-time highs (ATHs) during 2024. ETH lost 41.6% value over the last year whereas BTC increased its value by 26%. Crypto specialist Jesse Olson believes that Ethereum falls because aggressive sellers push down its market value and create a three-year low point for its RSI indicator.
According to Olson ETH needs further time to prove its market bottom status as it dropped 60% in May when the indicator reached similar levels. Based on past patterns ETH may fall to $800 if the market behaves identically.
Merlijn The Trader and fellow analyst both agree that Ethereum faces either success or failure during its current critical period. His view states that ETH needs to stay above $2,000 now to avoid bigger price falls because another drop would hurt it more. Several experts expect ETH values have hit bottom and will start rising again.
The crypto strategist noticed recent exchange balances hit their lowest level in nine years. The expert believes this growing shortage will benefit prices long term. The upcoming economic problems make it hard to predict how Ethereum will perform in the short term. ETH now stands at $2,126 but has decreased 8.9% in the previous day. ETH price stability and potential market direction are being actively monitored by traders at this time.
