Ethereum Falls Below $2,100 for First Time in 15 Months

Ethereum has dropped below $2,100 for the first time in 15 months, marking its lowest price point since December 2023. As of March 4, Ethereum (ETH) is trading at $2,063, a sharp decline of 15% in the past 24 hours. This drop follows an initial rally triggered by President Donald Trump’s announcement of a U.S. Crypto Strategic Reserve on March 2, which briefly pushed Ethereum’s price above $2,500.

However, the market sentiment shifted dramatically after Trump confirmed that fresh tariffs would be imposed on China, Canada, and Mexico starting on March 4. This news has raised concerns about broader economic instability, which has negatively impacted the cryptocurrency market, including Ethereum. The announcement caused ETH’s price to plummet, falling below its pre-rally level of around $2,190.

Ethereum’s momentum is showing signs of weakness, as both decentralized finance (DeFi) activity and the Ethereum futures market reflect this decline. Data from Coinglass indicates a 10% drop in open interest for ETH futures over the last day. Furthermore, the total value locked (TVL) in DeFi has hit its lowest level this year, decreasing from $71 billion in January to $48.1 billion by March 4. Additionally, $109 million in stablecoin outflows since March 1 suggest a decrease in liquidity, according to DeFiLlama data.

Ethereum whales, large holders of ETH, appear to be reducing their positions as well. Lookonchain reported a notable transaction on March 4, in which 30,000 ETH (worth about $68 million) was offloaded to FalconX and Galaxy Digital from a wallet associated with Genesis.

From a technical perspective, Ethereum is showing signs of increased risk for further declines. The Relative Strength Index (RSI) is nearing oversold conditions at 34, signaling reduced buying pressure. Moreover, ETH is trading below significant moving averages, including the 10-day exponential moving average (EMA) at $2,338 and the 50-day simple moving average (SMA) at $2,852, confirming a strong downtrend. Although technical indicators like oscillators offer conflicting signals, negative momentum and bearish MACD readings suggest that selling pressure is growing. Immediate support is located at $2,069, while resistance levels are at $2,163 and $2,321.

In the coming days, Ethereum may experience further declines if the bearish trend persists. However, there are potential catalysts for a reversal. The upcoming Ethereum Pectra upgrade in April is expected to improve scalability and staking flexibility, which could attract more network activity and investment. Additionally, the first White House Crypto Summit, scheduled for March 7, may provide more clarity on Trump’s plans for the U.S. Crypto Strategic Reserve, which could impact market sentiment and Ethereum’s price direction.