Ethereum Plummets 30% Amid Global Economic Pressures

Ethereum (ETH) has experienced a significant decline, plummeting 30% over the past two weeks. This drop reflects broader weakness across the crypto market, which is being impacted by escalating global economic pressures. Analyst Ali Martinez warns that ETH could fall even further in the near term, potentially testing the $1,200 level.

Ethereum continues to face challenges amid global economic uncertainties. The world’s second-largest cryptocurrency by market cap has dropped another 8.3% in the past 24 hours and is currently trading in the mid-$1,000 range. Martinez highlighted that ETH could find key support at the $1,200 mark, noting that the digital asset has broken through multiple support levels since December 2024, when it was trading near $4,000.

Renowned analyst Carl Moon observed that ETH is currently trading below its realized price of $2,000. He pointed out that the last time this occurred, during the height of the COVID-19 pandemic in March 2020, ETH had dropped from $289 to $109. However, Moon also noted that ETH recovered swiftly after that steep decline. Based on historical trends, the current price level could present a potential buying opportunity for long-term investors. The realized price for accumulation addresses represents the average price at which long-term holders acquired ETH, and this metric has historically acted as a strong support zone.

Despite the bearish sentiment, some on-chain metrics and historical patterns suggest that ETH could be on the verge of a strong bullish reversal. For example, crypto analyst Mister Crypto recently drew a comparison between ETH’s current price action and that from 2020, suggesting that Ethereum could embark on a price rally by Q2 2025. Additionally, Ethereum’s Market Value to Realized Value (MVRV) Z-score hints that ETH may be undervalued at current prices. The last time it was this undervalued, in October 2023, it witnessed a sharp rally of 160%.

However, not all indicators are bullish. Rising ETH exchange reserves continue to raise concerns about potential sell pressure from holders. At the time of reporting, ETH is trading at $1,457, down 8.3% over the past 24 hours. The Ethereum Fear & Greed Index currently sits at 20, indicating “extreme fear” among investors. Despite the bearish mood, the current price level could present a potential buying opportunity for long-term investors, according to the analyst's forecast.