Ethereum (ETH) has plunged to critical support levels around $1,400, marking a devastating 65% decline from 2024 highs as capitulation grips the market. The second-largest cryptocurrency by market cap is experiencing one of its steepest selloffs in recent memory, with analysts divided on whether the bottom is finally in sight.
The dramatic price action comes amid broader market turmoil, with Bitcoin also crashing below $75,000 as Trump’s tariff announcements spark panic selling across risk assets. For Ethereum specifically, the breakdown below the crucial $1,800 support level has triggered cascading liquidations and erased months of gains.
Market Expert Sees Light at End of Tunnel
Despite the bearish price action, prominent analyst Ted Pillows suggests the intense selling pressure could mark a bottoming process. “We’re seeing classic capitulation behavior in ETH right now,” Pillows noted. “While we may see one final 5-10% flush lower, the risk-reward for long-term investors is becoming increasingly attractive.”
Federal Reserve Pivot Could Spark Recovery
The potential catalyst for an Ethereum recovery could come from an unexpected source – the Federal Reserve. With traditional markets showing severe stress and the S&P 500 down over 10% in just two days, calls for emergency policy action are growing louder.
Historically, Fed pivots toward easier monetary policy have provided strong tailwinds for crypto assets. The last major policy shift in 2020 helped drive ETH from under $100 to over $4,800 during the following bull cycle.
Technical Outlook Remains Precarious
From a technical perspective, Ethereum faces significant challenges ahead. The loss of the $1,800 support level has opened the door for a potential retest of early 2022 lows. Key levels to watch include:
- Immediate support: $1,400
- Secondary support: $1,250
- Bull reversal level: $1,800
FAQ: Ethereum Market Outlook
Q: When could Ethereum price recover?
A: A recovery likely depends on broader market conditions and potential Fed policy shifts. A reclaim of $1,800 would signal improving momentum.
Q: What’s causing the current selloff?
A: Multiple factors including Trump trade policies, macro uncertainty, and technical breakdown below key support levels have triggered widespread selling.
Q: Is this a good time to buy ETH?
A: While prices are significantly discounted, continued volatility is likely. Dollar-cost averaging rather than lump-sum investing may be prudent.
Featured image from Shutterstock, chart from TradingView