Ethereum Price Forecast: Will ETH hit $1,100 as ETH/BTC pair nears All-Time Lows?

Ethereum price plunges below $1,600 on Tuesday, with ETH conceding more ground to BTC amid multi-chain expansion and rising macro pressure. With ETH price at risk of a potential slide to multi-year lows, here are key levels traders must watch in the days ahead.

Ethereum (ETH) faces intense sell-offs a week after Trump repeals DeFi law 

Ethereum (ETH) is facing increasing headwinds as its market share among Layer-1 chains continues to erode, now approaching historic lows last seen during the 2021 altcoin supercycle. 

Ethereum is facing bearish headwinds this week as competition among Layer-1 chains continues to erode, ETH market share. While Ethereum price is holding above the $1,590 level at press time, key trading signals suggest ETH could be at risk of plunging towards  historic lows last seen during the 2021 altcoin supercycle.

ETH’s latest sell-off intensifies just one week after former President Donald Trump repealed a Biden-approved law, mandating DeFi platforms to adhere to stringent KYC measures required of registered brokers.

Interestingly, the abrupt rollback—aimed at curbing what Trump called “bureaucratic overreach”—has instead spooked capital, accelerating outflows from Ethereum-based protocols.

With rising competition from faster, cheaper alternatives like Solana, Avalanche, and Base, Ethereum’s share of total value locked (TVL) and network activity has declined to under 55%, down from over 70% at its peak. 

Ethereum TVL plunges $12B as ecosystem demand weakens

Despite the successful rollout of Ethereum’s Dencun upgrade in March 2025, on-chain activity has remained tepid. Gas fees have stabilized at lower levels, but that has not translated into renewed demand. Daily active addresses and transaction counts are plateauing, while Ethereum L2s like Arbitrum and Optimism have absorbed increasing volume, inadvertently siphoning activity away from the base layer. 

Meanwhile, capital rotation into Solana and emerging EVM-compatible ecosystems has led to a fragmentation of liquidity, diluting Ethereum’s dominance in both DeFi and NFT verticals.

According to DeFillama data, investors have withdrawn over $12 billion from Ethereum DeFi protocols since the start of March 2025. 

ETH/BTC Pair Paints a Grim Picture

Ethereum’s underperformance is further highlighted in its ETH/BTC trading pair, which has now declined below the 0.02 level, a psychological threshold watched closely by strategic investors. 

The continued strength of Bitcoin’s dominance—now hovering above 54%—suggests capital is rotating out of altcoins and into more defensive majors as positive headwinds from US inflation data subsides. 

With the SEC yet to provide a regulatory model from Ethereum’s staking model, spot ETH ETF continue to face rapid outflows, as sentiment around ETH remains fragile. While US inflation eased macro pressures, investors remain jittery anticipating the impact of the US-China trade war on stock prices.

Ethereum Price Forecast: Bulls Count on $1,380 Support

As Ethereum’s market share relative to Bitcoin near all-time lows and bullish sentiment weakens,technical indicators reveal key support levels to watch in the days ahead. 

Ethereum long-term price forecast prospects remain strong due to its global developer network and media dominance, short- to medium-term price action suggests vulnerability. Unless ETH can reclaim the $2,200 level with strong volume and improve on-chain fundamentals, the downside target near $1,100 may become an increasingly realistic scenario.

Hovering around $1,642, ETH price is trading at 31% discount from March highs, with a potential drop to $1,100 flagged by the measured move of a bear flag breakdown. However, the RSI at 42.45 suggests ETH is near oversold territory, hinting at possible short-term support near $1,385. While the 50-, 100-, and 200-day SMAs remain in a clear bearish alignment, the current consolidation pattern shows ETH trying to stabilize.

In this scenario, a bullish Ethereum price forecast would require a breakout above $1,730. Conversely, failure to hold $1,597 risks confirming the $1,100 downside target.