Why is ethereum decreased? The price of ETH decreased to $ 2,000, a 16-month low test

However, short-term euphoria, as it did with other symbols including bitcoin, digital assets such as the stock market-have proven to decline, and with a large margin. Paul Howard, Wincent

“The news about a strategic reserve has long been expected. Paul Howard commented from Wint, that the timing on Sunday over 28 weeks may not be a coincidence.”

“Blacking what the largest asset manager in the world mentioned, the possession of digital assets with 2-3 % of your portfolio is now what the US government is doing. The question is the countries that will follow the following and who is the latter on the margin with an uncertain portfolio or pay higher prices to move to the digital era.”

How low can ethereum go?

Currently, the level of $ 2000 has been defended. However, in the event of this support – i.e. nullification of monotheism that has been formed since the beginning of 2024 – the effects of ETH can be deep.

The first support level you set is $ 1540, which corresponds to its lowest levels from the second half of 2023. The next level is about 1000 to 1070 dollars, which represents its lowest levels from 2022 that was tested twice. The final level is its lowest level from 2020 at only $ 174.

Where do this extreme drop falls from – a decrease of about 90 % from the current prices? It arises from the double pattern that you set on the weekly graph (with tops in 2024 that exceeds $ 4000), whose lower borders are exactly the level of $ 2000. If this level is broken, the size of the pattern will be about $ 174.

Will Ethereum be disrupted? Eth/USDT Technical Analysis. Source: TradingView.com

Although I am not currently expecting such a sudden collapse in ETHEREUM – especially given its expected role as an important element in the United States’ reserves – it is wise to put this warning scenario into consideration.

Ethereum price collapse: 4 reasons

Ethereum has always been the cornerstone of the cryptocurrency world, known as the functions of the smart nodes and decentralized applications (DAPS). However, despite its strong basics, ETH faced a series of challenges that contributed to lower prices. If you are wondering why Ethereum decreases, here are the main reasons behind the recession.

1. Total economic pressures and commercial tensions

One of the biggest factors that affect the price of ETHEREUM today is the broader economic climate. Global trade tensions, especially from the policies of the United States during the era of President Trump, have rocked the financial markets. Recent advertisements on customs tariffs on countries such as Canada, Mexico and China have sparked risk morale among investors. Current currencies, which are often seen as high -risk assets, tend to suffer when traditional markets turn down.

2. Huge liquidation and whale activity

Another decisive reason behind the low Ethereum is important liquidation events in the encryption space. The owners of adults, often referred to as “whales”, emptied the ETH holdings, adding pressure to the price. The data on the series indicate that Ethereum supplies on the central stock exchanges amounted to 16.2 million ETH in early February, indicating a significant sale by the main players.

Moreover, there have been a huge qualifications for long situations on the market supported over the past 24 hours, which amounted to $ 861 million in total. From that, BTC Longs formed $ 310 million, while Eth Longs was second, with $ 168 million.

Source: Coinglass

3. Technical faults and hole indicators

Analysts have pointed to Habboudia patterns, indicating a possible decrease to 1945 dollars – or even less than $ 1,200 – if the momentum does not turn. MACD and RSI also indicates the continuous declining feelings, providing an artistic answer to the reason for the decrease in ETHEREUM.

4. The challenges of competition and network

Ethereum dominance in the Blockchain ecological system is exposed to a threat of competitors such as Solana, which features faster speeds of less transactions and fees. The rise of layer 2 solutions, although it is useful for expansion, has also turned into activity away from the basic layer of ETHEREUM, which reduces the demand for ETH in some cases.

Moreover, the ETHEREUM conversion was assumed to prove “integration” in 2022 to create a contraction model by burning transactions. However, since April 2024, the offer increased by 0.37 %, reaching 120.59 million ETH. This inflationary trend, along with a low network activity, may reduce the investor confidence.

Source: ycharts

Will Ethereum rise?

Although the reasons that make Ethereum decrease clear, the future is not necessarily dark. Many positive indicators indicate a possible recovery:

• Decrease in the stock exchange: data from Cryptoquant Adrop appears in the stock exchanges, which allows a transformation to the pressure of self -needs and the pressure pressure.
• Institutional interest: Despite short -term external flows, long -term confidence in Ethereum is still, with some analysts expected to $ 7,000 by the end of 2025 in the event of adoption growth.
• Suggested promotions: Solutions such as EIP-7781 aimed at treating network performance and restoring the state of contraction in ETHEREUM, and may enhance feelings.

However, in order for Ethereum to recover, it must go back above the critical resistance levels – up to 2800 dollars – and overcome the total opposite winds. Investors must monitor market trends and global developments to measure the next step for ETH.

Ethereum news, common questions

What happens to Ethereum?

Ethereum is witnessing significant fluctuations, as its price recently decreased to about $ 2000. This decrease is affected by the pressures of macroeconomics and references at the market level and technical factors. While Ethereum rose shortly after a announcement by former President Trump regarding a cryptocurrency reserve in the United States, excitement faded quickly, which resulted in the regeneration of the sale pressure.

Is there a future for eth?

Yes, Ethereum continues a strong future, given its role as a leading smart contract platform. Despite short -term fluctuations, Ethereum is still a major player in decentralized financing (Defi), non -applicable symbols (NFTS), and Blockchain solutions for institutions. The upcoming network promotions, such as EIP-7781, are expected to improve expansion and regain the ancient nature of ETHEREM, which may enhance the value proposal in the long run.

Can Ethereum reach $ 100,000?

Although Ethereum, which reaches $ 100,000 is not impossible, it requires unprecedented adoption and expansion of the market. Analysts expect more moderate goals, such as $ 7,000 by the end of 2025, if institutional adoption increases and network improvements are enhanced.

Will ETH recover?

ETHEREUM has the ability to recover, but its price procedures depend on several factors, including macroeconomic conditions, investor morale, and technical resistance levels. The step of more than $ 2,800 will indicate a stronger recovery, while the ongoing global uncertainty may keep the prices pent -up.