Ethereum (ETH) price has suffered a relentless bearish outlook as Bitcoin (BTC) price attempts to mirror gold's parabolic move.
As Bitcoin (BTC) price attempts to mirror gold’s parabolic move, Ethereum (ETH) price has suffered a relentless bearish outlook. The large-cap altcoin, with a fully diluted valuation of about $228 billion and a 24-hour average trading volume of around $19 billion, has been trapped in a multi-week correction.
Since the second inauguration of U.S. President Donald Trump, Ethereum price has lost two crucial support levels, around $3,200 and $2,200. In the past three weeks, Ether’s price has dropped over 33 percent to trade at about $1,891 on Friday, March 14, during the early European trading session.
Ethereum Whales Buys the Capitulation-Fear
As major stock indexes, led by the S&P 500, continue to bleed amid the heightened mid-term uncertainty triggered by the U.S. tariff wars, long-term traders and institutional investors have continued to take refuge in the gold and stablecoins market.
According to on-chain data from Glassnode, long-term Ether holders are in notable fear. Meanwhile, the U.S. spot Ether ETF issues are about to register the third consecutive week of cash outflow after recording a net outflow of about $73 million on Thursday.
Is the Bottom In Yet?
For the past year, Ethereum price has faced intense bearish sentiment after experiencing a heightened resistance level of around $4k. From a technical analysis standpoint, the ETH/USD is heavily oversold compared to Bitcoin (BTC).
As a result, Ether’s price must rebound from the current support level to avoid further capitulation towards $1.5k in the coming weeks. Additionally, the ETH/BTC pair has been retesting a crucial support level of around 0.023 in the past week, which could incubate bullish sentiment in the near future.
Silver Lining
The Ethereum network remains undisputed in the decentralized finance (DeFi) space, with around $45 billion in total value locked (TVL) and over $123 billion in stablecoins market cap. In a bid to remain competitive amid the rising adoption of alternative layer one (L1) chains like Solana (SOL), the Ethereum core developers are working on launching the Pectra upgrade soon.
On Thursday, Tim Beiko, a core developer at Ethereum Foundation, announced the team will launch the third testnet dubbed Hoodi, to better prepare for the Pectra upgrade by at least mid April, 2025.
