Ethereum Drops 14.5% as Market Cap Falls to $186.5 Billion

Ethereum is currently experiencing significant downward pressure, with the entire cryptocurrency market entering a fresh downtrend over the past 24 hours. This renewed selling pressure has caused Ethereum's price to drop below a strong support level at $1,800, resulting in a 14.5% decline from its price 24 hours prior. The trading trend indicates that Ethereum's price is on the verge of breaking below $1,500, with some analysts predicting a potential drop to as low as $1,000. Despite this sharp decline, technical patterns suggest that Ethereum could potentially revisit much higher price levels, specifically to fill multiple CME futures gaps that remain open above the current market price, reaching as high as $3,933.

The loss of the $1,800 support level has strengthened the bearish case for Ethereum, particularly amid broader weakness in the altcoin market. Crypto analyst Andrew Kang has argued that Ethereum's price is overvalued, describing its $215 billion market cap as "ridiculous" for what he considers a "negative growth/profitability asset." According to Kang, the momentum that previously drove Ethereum's price surge has dissipated, making a revisit to the $1,000 to $1,500 zone not only likely but overdue. Since his statement, Ethereum's market cap has dropped significantly, sliding to $186.5 billion. The pace and depth of this decline suggest that investor confidence in Ethereum may be lower than expected, with no immediate signs of a reversal. If bearish pressure continues, Ethereum could soon find itself trading at the lower end of Kang's projected range at $1,000.

Despite the downward price action, Ethereum's CME futures chart presents a different outlook. Titan of Crypto pointed out that there are three distinct CME gaps that remain unfilled above the current market level. These gaps include ranges between $2,550 and $2,625, $2,890 and $3,050, and a partially filled gap between $3,917 and $3,933. The CME gap theory suggests that asset prices often return to fill these voids, even if the move takes weeks or months. In Ethereum's case, the odds of a return to these CME gaps are low in the short term. However, considering that Q2 2025 is just starting, there is still enough time to witness the buying pressure needed to fill these levels before the end of the year. At the time of writing, Ethereum is trading at $1,540, down by 14.5% in the past 24 hours.