Ethereum Plummets 65% From 2024 Peak Amid Market Weakness

Ethereum's price has experienced a significant decline, reaching approximately $1,400, marking its most severe market drop since early 2023. This downturn represents a greater than 65% decrease from its 2024 peak, raising concerns among investors about its future trajectory. The continuous market sell-offs are driven by intensifying market weaknesses and increasing macroeconomic uncertainties.

Professional evaluators suggest that Ethereum may be nearing the end of its market-wide decline period. Market analyst Ted Pillows predicts a potential 5%–10% market drop followed by an upcoming rebound, based on existing market conditions. He identifies changes in Federal Reserve monetary policy as the main factor that could reduce market stress and promote recovery.

The underperforming financial markets, along with administration policy uncertainties and trade tensions, have generated negative sentiments that have affected both equity markets and the cryptocurrency sector. The severe decrease in the S&P 500 index has intensified recession worries worldwide, negatively impacting Ethereum’s market valuation. A shift in Federal Reserve policy, including interest rate reductions and revived quantitative easing measures, could stabilize Ethereum pricing and enable a potential market rebound.

The five-minute Ethereum price chart shows a descending price movement as ETH has established lower price peaks beneath declining support. The support area between $1,420 and $1,440 provided multiple opportunities for buyers to enter. ETH initially touched the demand area at the beginning of the trading day before rebounding but remains in consolidation around the $1,500 region. A sustained upward trend in ETH requires the coin to maintain positions above the downward trendline and overcome resistance within the $1,560–$1,600 zone.

The RSI has entered oversold areas multiple times, resulting in brief market rallies. The MACD indicator depicts both golden crosses and death crosses, demonstrating market swings. A new MACD golden cross at 07:30 UTC coincided with ETH price rising toward $1,500. However, the MACD indicator showed signs of weakness again. ETH's trend faces a risk of declining toward $1,420 or below the current price if it fails to maintain a position above $1,440. Only maintaining price levels above $1,500 would possibly create conditions for a price rally towards the range of $1,520–$1,560. Ethereum's recovery prospects are uncertain, with some analysts predicting a potential drop to $1,000 before a rebound.

Ethereum's price value declined to $1,400, its most significant fall since early 2023, leading investors to experience concerns about general financial instability. Worldwide experts predict that if the Federal Reserve relaxes its monetary policy, either a 5% drop or a 10% drop would demonstrate this market trend’s conclusion after it fell by 65% from its record peak. Several technical indicators suggest that an upward shift is possible in the short term based on RSI and a recent MACD golden cross, indicating a future market recovery. Price needs to keep its value above $1,440 and successfully cross the $1,500 threshold for a sureshot Ethereum recovery. Continued price downfalls could occur if investors cannot maintain their current position while they monitor potential market recoveries.