Ethereum price prediction: Sell-off deepens as market turns risk-off
Ethereum price drops 21%, briefly touching $2,000—lowest since November 2023.
Ethereum price action has faced a steep decline, wiping out early March gains and dragging prices to their lowest levels in 16 months.
Over the past two days, ETH has dropped 21% briefly touching the psychologically significant $2,000 level, a price last observed in November 2023. The downturn follows a broader crypto market decline, which has wiped out over $400 billion, with Ethereum being one of the hardest-hit assets.
The recent sell-off comes after Ethereum initially surged on news that U.S. President Donald Trump proposed including the asset in a U.S. crypto reserve. However, this bullish catalyst was quickly overshadowed by a broader shift to risk-off sentiment in global markets as rising trade war tensions and economic policy uncertainty led to a sell-off across multiple asset classes, including stocks, oil, and cryptocurrencies.
Ethereum price outlook: Macro risk and RSI signals strong selling pressure
Ethereum price dynamics (Jan 2025 - March 2025). Source: TradingView.
As of Tuesday, March 4th, Ethereum has rebounded slightly from its two-year low and is trading near $2,100. The price is now approaching the $2,160 level, which acted as support in February but has now turned into a key resistance area. A failure to reclaim this level could see further downside pressure on ETH.
Technically, both the daily and 4-hour RSI readings are in negative territory, suggesting that the selling momentum is still strong. If Ethereum fails to hold above the $2,000 level, a deeper decline into the $1,000 range is possible.
Overall, Ethereum’s price trajectory now depends on whether the market sentiment stabilizes or risk aversion continues to weigh on crypto assets. The $2,160 resistance and $2,000 support levels will be key in determining the next directional move.
Trump’s crypto reserve announcement briefly lifted Ethereum by 14%, against a two-month downtrend. However, ETH faced resistance at the 100 EMA and fell 7%, retesting support at $2,333.
