Crypto Market Crash Deepens—Ethereum Down 4%, Hits $1,887! Inflation and Weak ETFs to Blame?

The crypto market crash intensified this week as the ETH price dropped to its lowest against Bitcoin in four years. The market erased almost all gains from the start of the week, with Bitcoin dropping 3.8%, lowering BTC to $83,800. Top altcoins such as Avalanche (AVAX), Polygon (POL), and Uniswap (UNI) declined by nearly 10%, which added up to a total market loss of $115 billion. Investors are still being guarded by economic uncertainty and inflation that is affecting digital asset trading.

Market Decline and Economic Effect

The S&P 500 lost 2%, and the Nasdaq declined 2.8%, whereas crypto-oriented stocks were affected even worse. MicroStrategy, which holds the most Bitcoin of any public company, lost 10%, and Coinbase dropped 7.7%. One of the largest contributors to the crypto market crash is the inflation report in February, which came in at 2.5% year over year, while core inflation remains at 2.8%. 

Poor consumer expenditures and an estimated 2.8% collapse in U.S. GDP for Q1 are fueling uncertainty about the economy and inflation. New American tariffs imposed at the beginning of April are adding pressure to global markets as well.

Ethereum’s Struggles Against Bitcoin

Ethereum suffered more losses compared to Bitcoin. It is declining by more than 6% and falling to its lowest price relative to BTC since May 2020. In contrast to Bitcoin ETFs, which received more than $1 billion in inflows, Ethereum ETFs have yet to capture investor attention.

With digital asset trading seeing lower liquidity, traders worry that Ethereum will continue to lag. Lack of demand for Ethereum ETFs over Bitcoin ETFs indicates investors perceive ETH as a riskier asset. 

Ethereum’s Technical Outlook

Ethereum has fallen 4.00% past week, currently trading at $1,887.2. The weekly chart shows ETH struggling to remain above the $2,075 resistance level, leading to a steady sell-off. It has fueled ETH’s decline further, with macroeconomic issues joining the bear force.

Chart 1 – ETH/USD weekly price, published on TradingView, March 29, 2025.

ETH’s year-to-date loss of 43.36% demonstrates a bearish position. The risk of higher inflation, worsening economic news, and impending tariffs has spurred doubt in financial markets, and cryptocurrency prices have suffered as a consequence.

Future Predictions for Bitcoin and Ethereum

Crypto analyst Michaël van de Poppe warns that Bitcoin is losing momentum. If BTC falls below $84K, it may lead to more declines. He predicts the crypto market crash could last for another week before a possible Q2 rebound. Meanwhile, analysts feel that there is solid Bitcoin support between $70,000 and $75,000, which can stabilize prices.

Institutional investment is also a major consideration for Ethereum. If ETH is unable to pull in ETF inflows, it could continue to lag. That said, growing network adoption and future upgrades can offer long-term support. Traders are watching closely at significant levels to see if the price of Ethereum will stabilize.

What’s Next for Crypto?

The crypto market crash persists on the back of economic uncertainty and inflation, and declining institutional interest in Ethereum. Although Bitcoin has been resilient, the lack of ETF inflows in ETH is a concern. Investors must be watching key levels of support within the Bitcoin drop and the ETH price. Even though short-term losses persist, long-term usage and institutional involvement might be sufficient to revive the market within subsequent months.