Ethereum Plummets to $2030, Sparking Market Panic

Ethereum's price has experienced a significant drop, plummeting to a low of $2,030 and sparking market panic. This sharp decline has erased recent gains and raised concerns about a potential longer-term downturn. Key metrics, such as open interest and liquidation levels, indicate strong selling pressure. Despite the negative sentiment, some investors view this dip as an opportunity to buy, arguing that Ethereum is undervalued and could experience future growth. The market remains divided, with some investors fearing losses and others eyeing potential opportunities.

Ethereum's price has fallen by nearly 35% since the beginning of 2025, when it was trading at $3,300. After initially surging following the announcement of a national crypto reserve, Ethereum has since lost all of its progress and is now trading around $2,100. If this worrying downtrend persists, a recovery in the near future may be unlikely.

In the last 24 hours, Ethereum's value has crashed by more than 14%, with open interest decreasing by 10.8% to reach $18.8 billion. Liquidations for altcoins have also increased, reaching $209 million. Market analyst Venturefounder predicts that Ethereum's price could continue to fall, potentially reaching $1,600, which would mark the worst Q1 performance in Ethereum's history.

The bearish trend began as Ethereum failed to surpass the $2,550 resistance level. The decline gained momentum as Ethereum broke through the $2,400 and $2,350 support levels. As the downtrend continued, Ethereum fell below the $2,250 support and reached a new low of $2,030. This Ethereum price drop resulted in a massive price swing from $2,550 to $2,030.

Institutional investors have been exiting the Ethereum market, with etha shares falling more than 38% since the start of 2025. Economist Peter Schiff commented on this decline, stating that Ethereum ETFs have been down 40% since their launch and that he believes Ethereum's value could fall further.

Despite the Ethereum bearish trend, some traders are taking the risk and