by Rubab Fatima
Ethereum plummeted 15% below its support level which took the price down to $2,000 for the first time since November. Large blocks of whales sold their Ethereum positions which took away all value gained since the election.
The addition of Ethereum to strategic reserves did not stop investors from selling their holdings at this time. Ethereum-focused Exchange-Traded Funds recorded huge $51.36 million capital departures because investors started to doubt the future.
Increased selling from financial institutions creates excessive market risk that makes support defense harder. Market experts predict that if Ethereum stays below $2,000 it might continue dropping to $1,900.
Mar 3 Update:
10 #Bitcoin ETFs
NetFlow: +1,272 $BTC(+$115.06M)#Fidelity inflows 2,096 $BTC($189.63M) and currently holds 200,534 $BTC($18.15B).9 #Ethereum ETFs
NetFlow: -22,457 $ETH(-$51.36M)#iShares(Blackrock) outflows 13,626 $ETH($31.16M) and currently holds 1,292,489… pic.twitter.com/EMk29y2ki6
— Lookonchain (@lookonchain) March 3, 2025
Ethereum Drops 15%, Enters Key Demand Zone
The entire cryptocurrency market became more unstable due to external events particularly Trump’s tweet about strategic reserves. After his tweet the combined value of all cryptocurrencies increased by 8% but returned to $3 trillion shortly after.
The market dramatically turned around after increasing 8% by dropping 10.20% to close at $2.78 trillion. During the 24-hour period the market lost $220 billion meaning it stays highly unstable right now.
A whale wallet with over 110K $ETH($235M) appears to be selling $ETH.
In the past 14 hours, this wallet has transferred 30,000 $ETH($68.55M) to #FalconX and #GalaxyDigital and received 7.76M $USDC from #FalconX.
The wallet may be related to #GenesisTrading.… pic.twitter.com/p6Gzb9S4iO
— Lookonchain (@lookonchain) March 4, 2025
The 15% price drop was enough to push ETH prices into an important demand area yet it remains doubtful that recovery will happen fast. Buyers have the chance to invest at lower prices because this pullback demonstrates market attractiveness. Available ETH data signals individual investors are not interested to buy making ETH’s future movement uncertain.
The data recorded within Ethereum’s system shows that its recovery options are weak. Despite being negative the Coinbase Premium Index shows that U.S.-based institutions do not want Ethereum right now.
The supply of Ethereum from crypto exchanges increases, creating stronger selling power at this time. Trading volume slumped by 5.50% which reveals traders are not actively buying at this moment and puts Ethereum’s future price direction at risk.
Open Interest Spikes Before Sell-Off, Then Drops 8.39%
The selling pressure on Ethereum increased because of $168.13 million in long position sell-offs across various markets. The market saw an increase in sellers placing orders while this also boosted the amount of trading participants. During the day before the sell-off the market absorbed $2 billion new positions which boosted Open Interest (OI) by 10% to $21.11 billion.
Futures traders engaged in fast asset unwinding after the sudden decline with an 8.39% decrease in OI as they sold to protect profits or mitigate losses. ETH needs strong market buying power and a big seller exit to recover because supply exceeds market demand and trading liquidity weakens.
The outcome of Ethereum depends greatly on how investors view the entire cryptocurrency marketplace. Bitcoin trends affect other digital coins so its upcoming rise should provide stability to ETH.
Ethereum’s future growth depends on whether market fear stays very high while dealers keep selling and buyers don’t show strong support. The ETH market may fall to $1,900 price range when Bitcoin fails to generate enough purchasing support.
The market continues observing trends while waiting for new demand and supply patterns to emerge. Ethereum operates in a critical period where it must endure numerous potential problems.
#blockchain #crypto, #decentralized, #distributed, #ledger
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