Ethereum, one of the top cryptocurrencies in the market, has been facing a tough time lately. The price of Ethereum has dropped by 27.7% in the past 30 days, currently standing at $1,976.75. Analysts are concerned that if this downward trend continues, ETH could plummet to as low as $1,060. Let’s delve into the main reasons behind Ethereum’s struggles.
Ethereum has been attempting to break through the $4,000 level three times in this market cycle but has failed each time. Each rejection has exerted downward pressure on the price, leading to a bearish trend. Adding to the woes, ETH has fallen below a crucial upward trendline that had been supporting its price since the last market cycle’s bottom.
To regain strength, analysts suggest that Ethereum must reclaim the $2,500 level soon. However, if the decline persists, the next major support level is at $1,060. Until Ethereum finds a solid bottom, the downward momentum is likely to continue.
The daily Relative Strength Index (RSI) for Ethereum is currently at 41.75, indicating a possibility of a price rebound. Nevertheless, without improved market conditions, Ethereum may struggle to recover despite this technical signal.
Data from Coinglass shows that U.S.-based Ethereum ETFs have been experiencing continuous outflows in 2025. Just yesterday, $52.80 million exited the Ethereum spot ETF market, with total outflows of at least $248 million over the past seven days. In contrast, Bitcoin spot ETFs have been performing better, suggesting that institutional investors are favoring Bitcoin over Ethereum.
On-chain data reveals a significant decline in Ethereum network usage. The number of transactions this month has dropped significantly compared to the same period last year. Additionally, median gas fees on the Ethereum mainnet have decreased, indicating lower demand.
At the beginning of the month, Ethereum was priced at $2,218.81. On March 2, it surged by 13.7%, only to be followed by a sharp 14.66% drop the next day. Another notable decline occurred between March 9 and 10, with ETH losing 15.16% in just two days. The market has yet to recover from these corrections, keeping Ethereum under bearish pressure.
In conclusion, Ethereum is facing multiple challenges that are hindering its price recovery. With declining network activity, investor preference for Bitcoin, and ongoing bearish pressure, Ethereum may continue to struggle in the near term. Investors and traders should closely monitor key levels and market indicators to assess the future direction of Ethereum’s price movements.