Ethereum (ETH) Price Declines as Investors Pivot to Bitcoin (BTC)

Ethereum (ETH), the second-largest cryptocurrency by market capitalization, is facing increased selling pressure, struggling to sustain price levels above $1800.

The second-largest cryptocurrency, Ethereum (ETH), is faced with increasing selling pressure as it struggles to stay above the $1,800 price level. This downward trend is unfolding as investors are seen pivoting back into Bitcoin (BTC), which recently touched the $84,000 mark.

This selling pressure on Ethereum could worsen if the price drops below $1,600, putting 8.73 million ETH addresses, currently holding 3.61 million ETH in the $1,596 – $1,790 accumulation zone, into liquidation.

What’s more, institutional interest in Ethereum has fizzled in recent weeks, with several key metrics indicating a lack of institutional demand for ETH at current price levels.

Why Is Ethereum’s Price Declining?

Ethereum’s price struggles are driven by several key factors, including:

Growing Regulatory Uncertainty: The nomination of Paul Atkins as the new SEC chair was initially seen as a positive development for crypto. However, opposition from Congress due to concerns over potential conflicts of interest has clouded the regulatory landscape. This pushes pro-crypto policies, such as Trump’s proposal to include ETH in the Crypto Strategic Reserve, at risk of delay or rejection.

As a result, investors are adopting a more risk-averse approach, seeking refuge in Bitcoin, which is viewed as a more stable asset in times of uncertainty.

Bitcoin’s recent price surge to $84,000 has further diverted capital from Ethereum, leading to weaker demand for ETH and more price pressure.

Ethereum Price Analysis: March 30

On the technical front, Ethereum is currently trading below several key resistance levels, and market trends suggest further downside risks. The asset struggled to break past the $1,800 mark, indicating weakening bullish momentum.

What’s more, the daily trading volume in Ethereum’s spot market dropped by 26% in the last 24 hours, signaling a lack of strong buying interest at current price levels.

Key Support and Resistance Levels:

$2,000: A key psychological resistance level that could spark a fresh wave of bullish interest if reached.

$1,800: A strong resistance zone that has stalled Ethereum’s recent recovery attempts.

$1,600: A crucial support level to watch out for. Breaking below this level could invite more selling pressure and open the door for a deeper correction towards $1,500 or lower.

8.73 Million ETH Addresses at Risk

Zoom in on the lower time frame, and the picture for long-term Ethereum holders becomes bleaker. On-chain data from IntoTheBlock reveals that 8.73 million ETH addresses are currently holding their coins in the $1,596 – $1,790 range. This capital at risk is a staggering 3.61 million ETH.

Crucially, if the price drops below $1,600, many of these addresses could be pushed into liquidation. This could trigger a vicious cycle of more selling pressure and further price declines, spelling trouble for already burdened ETH holders.

Impact of Weak Institutional Demand

Institutional interest in Ethereum has also dwindled in recent weeks, with several key metrics signaling a lack of institutional demand for ETH at current price levels. Several factors contribute to this decline:

ETH vs. BTC: A Shift in Investor Sentiment

Historically, Ethereum and Bitcoin have shared a strong correlation, with ETH often following BTC’s price movements. However, the recent market dynamics indicate a shift in investor sentiment.

While Bitcoin has sustained a strong upward trajectory, Ethereum has struggled to attract buyers, reflecting a growing preference for BTC as a store of value during times of economic uncertainty. This divergence highlights the fragility of Ethereum’s short-term prospects.

ETH Price Forecast: Risks of a Breakdown Below $1,750

To sum up, Ethereum is currently facing significant headwinds as it trades at $1,808.82. Technical indicators suggest further downside risks, especially if ETH fails to hold above the $1,750 support level. A breakdown below this level could invite a steeper decline towards $1,600 or lower.

This move would put millions of ETH holders in the $1,596 – $1,790 accumulation zone at risk of liquidation, potentially triggering a cascade of sell-offs and accelerating the bear market.

Several bearish indicators support this outlook:

Despite the recent bullish narrative surrounding crypto, the broader market trends suggest otherwise. The market cap of the total crypto market has dropped by 2.24% in the last 24 hours, signaling a lack of overall strength.

Moreover, the crypto market volume has decreased by 20.34% in the past 24 hours, indicating reduced trading activity and weaker interest in cryptocurrencies at current price levels.

This lack of volume could be attributed