Ethereum Price Drops 30% – Will ETH Fall Below $2K?

by Ouess

Ethereum (ETH) has lost over 30% of its value in the past month, falling to levels last seen in December 2023. This sharp decline has also pushed the ETH/BTC ratio to its lowest point since January 2021, signaling Ethereum’s underperformance compared to Bitcoin.

Why Is Ethereum Struggling?

Several factors have contributed to Ethereum’s downtrend:

ETH/BTC ratio source : TradingView

Increased Selling Pressure – ETH broke below key support on February 25, accelerating its decline.
ETH/BTC Weakness – The ratio has dropped to 0.02, indicating that ETH is losing ground against Bitcoin.
Rising ETH Supply – Over 66,748 ETH ($140M) entered circulation last month, increasing selling pressure.
Weaker Burn Rate – A slowdown in Ethereum’s burn rate has led to more tokens in supply, contributing to the price dip.

ETH Supply. Source: Ultra Sound Money

Will Ethereum Drop Below $2,000?

Ethereum is currently trading at $2,089, sitting below key support levels. If selling pressure continues, ETH could fall to $1,922.

ETH/BTC ratio source : TradingView

However, if demand picks up, Ethereum could rebound toward $2,223 in the short term. Traders should watch for volume surges and demand shifts to determine the next move.

Final Thoughts

Ethereum is facing a critical test at the $2,000 support level. If bears maintain control, further downside is possible. But if buying interest returns, ETH may recover.

Where do you think ETH is headed next? Drop your thoughts in the comments!

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