Ethereum Price Drop Alert: Market Panic as ETH Hits The $2,030 Low!

Ethereum’s price has swung wildly after news of a national crypto reserve. It briefly surged, then crashed hard. This sharp drop wiped out recent gains and raised fears of a longer decline. Key metrics, including open interest and liquidation levels, indicate strong selling pressure. Despite the negativity, some investors view this dip as a chance to buy. They argue Ethereum is undervalued, hinting at potential future growth. While uncertainty looms, the market remains divided between those fearing losses and those eyeing opportunities.

ETH Loses 35% in 2025— More Pain Ahead?

As Trump announced the national crypto reserve over the weekend, the price of Ethereum rose, even reaching above $2,500. However, Ether has lost all of that progress and, with a significant fall, is now trading around $2,100. Ethereum price drop marks a nearly 35% fall in value since it started 2025 at $3,300. If this worrying downtrend persists, a recovery in the near future could be implausible. 

Provided by Venturefounder, Published on CoinGape on March 4, 2025

In the last 24 hours, the value of ETH has crashed by more than 14%. This bearish movement is also strengthened by the 10.8% decrease in its open interest, reaching $18.8 billion. Moreover, the Coinglass data also shows that liquidations for these altcoins are also increasing, reaching %209 million. According to market analyst Venturefounder, Etheruem’s price could continue to fall and reach $1,600. As shown in Chart 1, if this happens, it could mark the worst Q1 performance in Etheruem’s history.

ETH Price Crash: Institutional Investors Exit

This bearish trend started as Ethereum failed to surpass the $2,550 resistance. The decline gained speed as ETH broke the $2,400 and $2,350 supports. As the downtrend continued, ETH went below the $2,250 support and fell even further than the last low. As the price tested the $2,000 support, it created a new low at $2,030. As such, this Ethereum price drop created a massive price swing from $2,550 to $2,030.

Unsurprisingly, the price of ETHA shares has also been falling since the start of 2025 and has declined more than 38%.  Now, at $16.09, this bearish development can be a sign that institutional investors have left the ETHA market. As Ethereum shares have lost all of the post-election gains, this development seems logical. Economist Peter Schiff commented on this decline and stated that Ethereum ETFs have been down 40% since their launch. He also added that he believes Ethereum’s value can fall much more.

Ethereum at a Discount? Some Traders Are Taking the Risk

Despite the Ethereum bearish trend, there are still some community members who believe this decline can represent a lucrative opportunity. Market analyst IncomeSharks highlighted the 14% drop in ETH’s price as a good opportunity to buy in the dip. This community member confirmed their Ethereum purchase and called the drop “too big of a red candle not to buy.” However, they clarified that their ETH investment is made with caution and in small amounts. The market commentator Venturefounder also holds a positive yet cautious view as he mentions ETH is entering the undervaluation zone.

Ethereum’s Next Move: Recovery or Deeper Correction?

If selling pressure stays strong, the Ethereum bearish trend may continue, possibly testing the $2,000 mark again. Falling below this level could spark panic, causing a steeper decline. As such, investors should remain cautious. Buying during dips should be gradual rather than aggressive as price swings continue. Watching key support and resistance levels will also help identify potential reversals. Consequently, patience and risk control will be necessary to handle this unpredictable market.