Ethereum Plunges 10% as Market Sentiment Sours

Ethereum has fallen nearly 10% in the past 24 hours. The second-largest cryptocurrency dropped from $2,721 on February 24 to $2,313 earlier today. This decline has pushed ETH to what analysts describe as a critical support level.

The broader cryptocurrency market is experiencing significant downward pressure. Nearly $300 billion in market capitalisation has been erased in the past day, representing a 10% decline in the sector's overall value. Ethereum's market capitalisation has contracted sharply from $340 billion to $286 billion in just two days.

"This is the make-or-break zone," wrote crypto trader Merlijn The Trader on social media platform X. The trader noted that Ethereum is currently testing its 50-day Simple Moving Average . Merlijn warned that ETH must hold the $2,350 price level. Failure to maintain this support could trigger further selling pressure. The next significant support would then be near $1,100, representing a substantial potential downside.

Analyst Ali Martinez identified $2,300 as another crucial threshold. According to Martinez's three-day chart analysis, this level corresponds to the bottom of the trading channel that Ethereum has maintained since November 2024.

Daan Crypto Trades highlighted ETH's repeated failure to breach the $2,800 resistance level. "This cycle, both $BTC $ETH have reacted well around the .786 levels so I'm keeping an eye on this area here," Daan noted. "The larger range between ~$2.1K-$2.8K remains the most important one. Anyways, currently just holding spot and not doing much."

The persistent weakness in Ethereum's price has raised questions about the potential for an "altseason" – a period when alternative cryptocurrencies outperform Bitcoin . Despite the current negative sentiment, some industry figures remain optimistic.

CryptoQuant CEO Ki Young Ju observed that there was no significant Ethereum selling pressure following the recent Bybit hack. Ju suggested that favorable regulations under US President Donald Trump could catalyze a "large-cap ETF altseason," potentially benefiting Ethereum.

Analyst Ted offered similar optimism. He pointed out that the altcoin market capitalisation has formed its first golden cross since Q1 2021. "The last time this happened, Altcoin market cap pumped 500% in just a few months," Ted wrote. "It looks like altseason will soon become a reality. Do you bullieve?"

On-chain metrics, however, do not support a positive short-term outlook. At press time, Ethereum is trading at $2,418, representing a 9.5% decline over the past 24 hours.

Disclaimer: The information provided in this article is for educational purposes only and should not be considered financial or legal advice. Always conduct your own research or consult a professional when dealing with cryptocurrency assets.