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Highlights
- Ethereum price has crashed 49% from its peak in December 2024, revisiting the $2,100 support level for the fifth time since January 2024.
- Technicals suggest that Ethereum price may dip below $2,000 as it hunts for sell-side liquidity below equal lows formed at $2,100.
- The resolution of the Ethereum Foundation crisis and the Crypto Summit on March 7 could potentially catalyze a bull run for Ethereum.
All bullish Ethereum price forecasts have become null as ETH price is down nearly 50% from its December 2024 peak of $2,400 and currently trades at $2,100. What can investors expect from Ethereum (ETH) after a sustained, painful downtrend for 12 consecutive weeks?
Despite the massive bull run in the crypto landscape since 2023, Ethereum (ETH) holders have not had the same experience. Although ETH price shot 243% in 2023 and early 2024, it has failed to perform for the better part of 2024. Meanwhile, its peer altcoins have yielded massive gains. As of this writing, ETH has undergone 12 weeks of agonizing downtrend.
Ethereum’s uninspiring performance can be attributed to the Ethereum Foundation’s unconcerned and unchanging approach toward ETH and Solana’s sudden popularity as an “ETH-killer.” Regardless, let’s explore what technicals suggest is next for Ethereum, the second-largest cryptocurrency in the world, after 12 weeks of downtrend as it follows Bitcoin’s lead.
What Comes After Ethereum Price Endures 12 Weeks of Pain?
As shown in the weekly chart, Ethereum price crashed 49% from a peak of $4,087 on December 2, 2024, to $2,076 as of February 24, roughly constituting 12 weeks. In doing so, ETH has revisited the $2,100 support level for the fifth time since January 2024. Due to these frequent visits, a large portion of liquidity is likely to be present below this key level from investors looking to open long positions, hoping for a reversal.
Technicals suggest that markets typically sweep this liquidity, allowing smart investors to buy at a discount, kickstarting a bullish reversal. So, to put it simply, investors can expect the ETH’s value to slide even lower before it can attempt to embark on a full-blown uptrend.
How Low Can ETH Go?
Based on the weekly chart, the Relative Strength Index (RSI) has attempted to overcome the mean level of 50 and failed, which signals a prevalence of strong bearish momentum. The Awesome Oscillator (AO) also expresses similar intent as it has produced three red histograms below the zero mean level.
Therefore, investors can expect the Ethereum price to dip below $2,000 as it hunts for the sell-side liquidity below equal lows formed at $2,100.
Catalysts That Could Prepone Ethereum’s Bull Run
Despite the lackluster Ethereum price performance, here are a few high-probability catalysts that could preempt ETH’s bull run.
- The Ethereum Foundation crisis involving Vitalik Buterin and Aya Miyaguci needs to be resolved with an appropriate replacement who will make Ethereum great again. A part of this solution was already implemented by removing Miyaguci from the helm and the Foundation exploring staking and other DeFi services instead of selling ETH for operational expenses.
- The Crypto Summit on March 7 could potentially pause the downtrend and catalyze a dead cat bounce. An announcement of a strategic digital asset stockpile that involves Bitcoin and Ethereum could further improve ETH’s odds of restarting the bull run.
Regardless, it will be interesting to see how Ethereum price predictions change as ETH price action nears the end of its 12-week painful downtrend.
Frequently Asked Questions (FAQs)
1. What has been the trend in Ethereum price over the past 12 weeks?
2. What technical indicators suggest is next for Ethereum price?
3. What are some potential catalysts that could preempt Ethereum's bull run?
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