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Ethereum Faces Struggles Amid Brutal Market Crash, Testing Key Support at $2,000. Despite Ethereum (ETH) finding a place in the US strategic reserves for crypto assets, the altcoin market has experienced a harsh crash after Ethereum failed to break through the $2,500 resistance level. Currently, Ethereum is testing a crucial support at the $2,000 level, extending its year-to-date losses to over 36%. Analysts suggest that ETH is on track to face its worst-performing first quarter (Q1) in history, marking a dramatic downturn for the leading altcoin.
Ethereum’s Struggles Set to Mark the Worst Q1 Performance in History
Ethereum, the world’s second-largest cryptocurrency, has been hit by a classic pump and dump scenario over the last 72 hours. As of now, the ETH price has dropped more than 14% in the past 24 hours, with open interest falling by over 10.8% to $18.8 billion. Moreover, the cryptocurrency has seen $209 million in liquidations within the past day, according to Coinglass data.
Since the beginning of the year, Ethereum has dropped more than 36%, from a high of $3,300, signaling the potential for its worst-performing first quarter. A fall to $1,600 would solidify this quarter as the most disastrous in Ethereum’s history, surpassing the decline seen in Q1 2018 after the previous cycle’s peak, according to analyst venturefounder.
In this turbulent market, it seems a savvy whale has profited by shorting Ethereum. A major Ethereum whale, who executed a 50x leveraged short position, is sitting on an unrealized profit exceeding $81 million as the price continues its downward trajectory.
Ethereum ETFs See Record Low Shares, Signaling Institutional Exodus
The downturn in Ethereum’s market has also significantly affected Ethereum Exchange-Traded Funds (ETFs). Over the last eight trading sessions, US Ethereum ETFs have experienced massive outflows. BlackRock’s iShares Ethereum Trust (ETHA) suffered the most, with over $164 million in outflows since February 24. Furthermore, the price of ETHA shares has plummeted by over 38.59% since the start of 2025, falling to $16.09.
This sharp decline in institutional interest suggests that Ethereum has lost its post-US election gains, with investors withdrawing from the asset. Economist Peter Schiff commented, “Despite Trump’s Truth Social Sunday Ethereum pump, Ethereum ETFs closed at record lows. They are now down 40% since launch, and 49% below their December 2023 highs. The worst part is that ETH still has a long way to fall.”
ETH Price: A Buy-The-Dip Opportunity?
Even as Ethereum drops to the $2,000 mark, market analysts are suggesting that this could represent a buy-the-dip opportunity for investors. After today’s 14% price crash, market analyst IncomeSharks noted that this “too big of a red candle” could make Ethereum an attractive purchase. While caution is advised, the analyst confirmed adding a small amount of Ethereum to their portfolio during the dip.
Crypto market commentator Venturefounder also issued a bearish short-term outlook for Ethereum. However, for long-term investors, the analyst emphasized that this could be the right time to start accumulating Ethereum, as the cryptocurrency approaches the “undervaluation zone.” Despite the challenges Ethereum faces, analysts remain cautiously optimistic about its future potential.
