Quickly understand the history and background of various well-known coins

Ethereum's Price Drops 66% Since November Peak, Hits $1,383 Low

Coin WorldThursday, May 1, 2025 1:53 am ET

1min read

Ethereum's price has been on a downward trajectory, reaching a low of $1,383 in April, the lowest point since March 2023. This decline represents a 66% drop from its peak in November of the previous year. The ETH/BTC pair has also seen a significant decrease, falling to 0.02, its lowest level since 2020, and retreating by over 78% from its pandemic high. This performance has been notably worse than that of other cryptocurrencies, with Ethereum on track to hit its all-time low soon.

Traders on a prediction market platform have expressed bearish sentiments regarding Ethereum's price. According to their predictions, there is a 39% chance that the ETH price will crash to $1,000 this year, while the odds of it rising to $4,000 are 23%. Another poll indicates that the likelihood of Ethereum reaching $4,500 this year is only 11%. Analysts also suggest that Ethereum may be overtaken as the second-largest cryptocurrency if its price continues to fall and if the XRP price rebounds as expected.

The downtrend in Ethereum's price can be attributed to several factors. The network is losing market share in industries such as decentralized finance and gaming, with competitors like Base, Arbitrum, sonic, and Solana gaining traction. Solana, in particular, has become a significant player in the meme coin industry, handling transactions valued at over $10 billion. Additionally, top players in the Ethereum network, such as Uniswap, are launching independent layer-2 chains, further fragmenting the market. Ethereum fees have also plummeted to a record low, indicating reduced network activity. The network has made less than $250 million this year and has been overtaken by competitors like lido, Solana, and Uniswap. Furthermore, Ethereum ETFs have not seen enough traction from investors, attracting only $2.5 billion in inflows since their inception, compared to Bitcoin ETFs, which have attracted almost $40 billion in assets.

Technical analysis of Ethereum's price chart reveals a bearish outlook. The weekly chart shows that the ETH price has dropped below the 61.8% Fibonacci Retracement level at $1,913 and has formed a triple-top chart pattern at $4,078. The coin has now dropped below the key support at $2,130, the lowest swing in 2024. The depth of this triple-top pattern is about 48%, and measuring the same distance from the neckline at $1,090, its lowest level in July 2022. A break above the key resistance at $2,130 would invalidate the bearish outlook and signal more gains ahead.

Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.