Ethereum Plunges to 16-Month Low Amid Crypto Market Rout

Ethereum's market sentiment has plummeted to its lowest point of the year, according to data from Santiment. The second-largest cryptocurrency, which has been a driving force in the decentralized finance (DeFi) and non-fungible token (NFT) sectors, has witnessed a significant decline in investor confidence in recent weeks.

The crypto fear and greed index has also reached extreme fear levels, dropping to as low as 15 just hours ago and currently standing at 20. This indicates that investors are overwhelmingly pessimistic about the current state of the crypto market. Ethereum has been particularly hard hit, with its price tumbling 10.9% to $2,091, its lowest level in 16 months. Analysts warn that the token could retreat to $1,200, revisiting bear market territory.

Ethereum's price crash signals one of its toughest quarters in recent memory. The altcoin is currently testing critical support levels around $2,000, extending its losses for the year to a staggering 36%. If it continues to fall, investors may become even more pessimistic about the cryptocurrency's prospects.

The recent decline in Ethereum's price can be attributed to a number of factors. US President Trump's announcement of the Crypto Strategic Reserve was initially greeted with enthusiasm, but the lack of details in the proposal has since led to a sell-off in the crypto market. Bitcoin, Ethereum, Solana, Ripple, and Cardano have all continued their declines for the second consecutive day, with Ethereum's price crashing below $2,000 for the first time since the 2023 bear market.

Analysts have predicted further declines for Ethereum, with some suggesting that the cryptocurrency could fall to as low as $1,200. The inclusion of XRP, SOL, and ADA in the US Crypto Reserve has also been a source of uncertainty and frustration among cryptocurrency traders, with Bitcoin's steep 10% drop within 24 hours adding to the market's jitters.

Despite the recent price declines, some analysts remain optimistic about Ethereum's long-term prospects. According to Crypto Rover, Ethereum's drop below the $2,000 mark could indicate potential bearish sentiment in the market, but the cryptocurrency