Ethereum (ETH) Price Drops Below $2,000 as the Crypto Market Faces a Decline

The crypto market is facing a decline, with increased fear coming from trade tensions and the effects of President Trump's Bitcoin Reserve order.

The crypto market continues to face difficulties as it navigates trade tensions and the implications of President Trump’s Bitcoin Reserve order. Among the leaders in the altcoin sector, Ethereum has seen a stark decline, dropping nearly 14% over the past week. This fall has pushed its value below the critical $2,000 mark and to a multi-year low against Bitcoin. As investors digest this development, the question arises: will Ethereum’s price bounce back above $2,000 or continue its bearish trajectory?

As seen by a drop in open interest and significant market liquidations, Ethereum has been heading lower. Recent data from Coinglass reveals that Ethereum has seen a total of $71 million in liquidations. Of this sum, $44 million came from longs (buyers) and $27 million from shorts (sellers).

Additionally, open interest in ETH has taken a sharp hit, decreasing by 2% to reach a new low of roughly $17.65 billion.

Furthermore, Ethereum’s performance against Bitcoin has been weakening, reaching its lowest point in over five years. According to Trading View, the ETH/BTC trading pair dipped to 0.02267, marking its lowest since May 2020. This decline showcases Ethereum’s decreasing strength compared to Bitcoin and suggests a move toward bearish sentiment.

This downturn has also affected Ethereum’s market dominance, which has fallen to 8.6%, the lowest since Feb 2020. In contrast, Bitcoin has been strengthening its market presence. Since 2022, Bitcoin’s market share has climbed to 61.1%, showcasing a significant growth streak.

Interestingly, comparing their value over time, in 2017, one could exchange one Bitcoin for about six ETH. Today, that same Bitcoin could fetch around 42 ETH, highlighting Ethereum’s steep decline in value relative to Bitcoin throughout the years.

Over the past year, investors have really favored Bitcoin, somewhat neglecting Ethereum despite its focus on utility. Meanwhile, Solana has also started to collect attention. This trend shows a strong preference for Bitcoin’s stability and Solana’s promising future, making it tougher for Ethereum to stand out.