FameEX Hot Topics | Has the Bull Market Left ETH Behind? A Rebound May Be Looming

Ethereum's price plummeted to a new yearly low of $1,996 on March 4, marking its lowest point since November 2023. This sharp decline triggered approximately $100 million in ETH liquidations within 24 hours and led to a 10.31% drop in futures open interest across exchanges. The downturn has intensified concerns about Ethereum’s short-term price stability and broader market sentiment.

Despite the decline, Ethereum’s upcoming Pectra upgrade, deployed on the Sepolia testnet on March 5, has generated mixed reactions. Gabriel Halm, a research analyst at IntoTheBlock, believes the upgrade could ease ETH’s selling pressure. However, uncertainty persists as investors assess its impact on Ethereum’s long-term growth and network efficiency.

Ethereum’s price has plunged 50% in just 78 days, from December 1, 2024, to March 4, 2025, erasing over $250 billion from its market capitalization. Such a dramatic drop, more characteristic of lower-cap assets, has rattled investor confidence and exposed the cryptocurrency to increased volatility.

Investor sentiment has deteriorated, with IntoTheBlock data showing only 26% of ETH addresses holding 36.92 million ETH remain profitable. Meanwhile, 70% of addresses are “out of the money,” meaning they are at a loss, while just 4.46% are at breakeven. These figures underscore the severity of Ethereum’s downturn and the financial strain on its holders.

From a technical standpoint, Ethereum’s recent weekly close below a 980-day uptrend, established since June 2022, signals a potential long-term trend reversal. Additionally, the relative strength index (RSI) has dropped to multi-year lows, reinforcing bearish sentiment. However, such extreme RSI levels may indicate weakening selling pressure, potentially paving the way for short-term relief rallies.

Disclaimer: The information provided in this section is for reference only and does not represent any investment advice or the official views of FameEX.