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As Ethereum drops below the 2018 market cycle high point, people's fear, uncertainty, and doubt about Ethereum have reached their peak.
Ethereum has wiped out seven years of gains, plummeting over 10% in the past 24 hours, breaking below the 2018 cycle peak of $1,450.
During Wednesday's Asian morning trading, the second-largest cryptocurrency by market cap crashed to $1,400. The crypto market has generally been in a sharp decline since Donald Trump's global trade tariffs took effect on April 9, and this crash is part of that trend.
The asset has now fallen more than 70% from its 2021 market cycle peak of $4,878, with most of the losses occurring in the past three months.
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Ethereum Technical Analysis
Ethereum has also dropped below its actual price, meaning the average long-term holders are now at a loss, as are short-term Bitcoin holders. However, historically, this marks the main accumulation zone and bottom-finding stage.
Additionally, according to Tradingview data, the BTC/ETH ratio measuring Bitcoin asset prices has fallen to a five-year low of 0.018.
Analyst James Check shared a more disheartening statistic: since its launch in 2015, Bitcoin has outperformed Ethereum on 85% of trading days.
Nevertheless, it seems that weak retail investors are panic selling, while institutional ETF investors appear to be holding. According to Farside Investors, most US spot Ethereum ETFs have seen zero or very small capital outflows in recent days due to the spot price crash.
What's Next for ETH?
On the positive side, analysts note that Ethereum supply on exchanges is decreasing, which could lead to a supply shock.
Other technical signals, such as the RSI (Relative Strength Index), are deep in the oversold territory, indicating that a bottom may be imminent.
Fundamentally, the situation is unlikely to change unless the macroeconomic outlook improves and the US reaches trade agreements with global partners (which might happen later this year). Central banks issuing more currency to address crises could also inject more liquidity into crypto assets.
Ethereum could also be boosted if real-world asset tokenization begins to rise and the network is used for products, thereby increasing demand for ETH.
Until then, Ethereum remains an outcast in the crypto community, having lost all the value accumulated since 2017. Some say it's a once-in-a-generation buying opportunity, while others have already given up on it.
