Ethereum price prediction: Rally fades 7% after Trump crypto reserve frenzy
Ethereum reverses gains as rally stalls at 100 EMA.
Ethereum (ETH) price started March with a sharp 14% surge, against a two-month downtrend as the market reacted to U.S. President Donald Trump’s announcement of a crypto reserve.
Trump’s post on Truth Social confirmed that Ethereum, alongside Bitcoin, XRP, Solana, and Cardano, would be included in this reserve, a move that briefly flipped sentiment on ETH. However, as seen on the 4hr chart, the rally was short-lived as price action encountered strong resistance at the 100 EMA, stalling further gains.
Today, March 3rd, Ethereum has reversed sharply, dropping over 7% during the Asian and European sessions. This decline brings ETH to the critical $2,333 support level, testing whether the market can sustain its earlier gains or if bearish pressure will resume. The rejection at the 100 EMA suggests that despite the initial reaction to Trump’s announcement, ETH remains in a broader downtrend.
RSI signals and macroeconomic factors weigh on Ethereum
Ethereum price dynamics (Nov 2024 - March 2025). Source: TradingView.
From a technical perspective, the RSI on the 4-hour chart remains in bearish territory, reinforcing the possibility of further downside if $2,333 fails to hold. A confirmed break below this level could trigger a full retracement of the 14% rally, potentially driving ETH back toward previous lows.
On the fundamental side, the broader crypto market remains uncertain regarding regulatory clarity, with Trump’s stance on digital assets offering temporary relief but lacking concrete policy action. Additionally, macroeconomic conditions, including Federal Reserve interest rate expectations, continue to influence risk assets, including cryptocurrencies.
Traders will closely monitor price action around $2,333 support, with the next downside target near $2,250 if a breakdown occurs. Conversely, any renewed buying interest would need to reclaim the 100-day EMA to revive bullish momentum.
Ethereum fell 9% to $2,077, extending its yearly losses to 37% and pushing RSI into oversold territory. The 30-day ETH futures premium ticked up to 7%, hinting at easing selling pressure.
