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crypto.news 2025-03-12 15:53:13

Ethereum price alert: here’s why ETH may crash to $1000 soon

Ethereum price is in its third consecutive week in the red as investors remain on the sidelines. Ethereum ( ETH ) traded at $1,758 this week, its lowest level since October 2023. It has plunged by over 55% from its highest level in November last year. Ether has crashed for several reasons. Spot Ethereum ETFs have continued to experience outflows, a sign of waning demand from Wall Street investors. Total outflows in the last three weeks stood at over $513 million, bringing the cumulative net inflows to $2.64 billion. Ethereum continues to lose market share in key industries like stablecoin processing and decentralized exchanges. Tron ( TRX ) has become the biggest blockchain for Tether processing, while layer-2 networks like Base and Arbitrum are gaining market share. Further, Ethereum is no longer the most profitable player in the crypto industry. It has made $210 million this year, much lower than what networks like Uniswap, Solana, Circle, Jito, Tron, and Tether have made. For a long time, Ethereum was the most profitable company in crypto. Santiment data shows that the number of daily active Ethereum addresses has continued falling. ETH had 293,000 addresses on March 12, down from over 717,000 earlier this year. As shown below, the social volume has continued moving downwards in the past few months. ETH daily active addresses, social volume | Source: Santiment Ethereum price technical analysis ETH price chart | Source: crypto.news The weekly chart shows that Ethereum’s price has been on a freefall after finding a strong barrier at $4,000, where it formed a triple-top pattern. Ether has now crashed below the key support at $2,135, the neckline of this triple-top pattern. It has also dropped below the 50-week moving average and the lower side of the ascending channel. This lower side connects the lowest swings in July and November 2022, October 2023, and September 2024. This decline is a sign that bears have prevailed. Ethereum is no longer oversold, meaning that it has more downside ahead. The Relative Strength Index has moved to 33, pointing to further downside. The Awesome Oscillator has moved below the zero line. Therefore, the path of the least resistance for the coin is bearish, with the initial target to watch being at $1,500. A drop below that level risks falling to the next psychological point at $1,000, down by 45% below the current level. A move above the major S/R level at $2,500 will invalidate the bearish view. You might also like: Will the XRP price crash to $1 or jump to $3.5 first?

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