Ethereum (ETH) Price Plunge Revives the Specter of the March 2020 Crash

Thus, when an asset shows troubling similarities to a past crash, analysts are put on alert. Ethereum, the second largest crypto on the market, is seeing its price plunge

The financial markets have their own memory, and cryptocurrencies are no exception. Thus, when an asset shows troubling similarities to a past crash, analysts are put on alert. Ethereum (ETH), the second largest crypto on the market, is seeing its price plunge, which revives the specter of the March 2020 crash. Trader Ted Pillows claims that the current market behavior of ETH almost exactly mirrors the capitulation of that dark period, suggesting a scenario where the asset could drop to as low as 1400 dollars.

This alert is given by a trader and analyst followed by many investors. In a message posted on X (formerly Twitter) on March 2, 2025, he states that “the current capitulation candle of ETH is a nearly identical copy of the March 2020 crash.” He specifies that a floor between 1400 and 1600 dollars is conceivable before any possible rebound.

This parallel is not trivial. In March 2020, Ethereum, like the entire crypto market, experienced a brutal collapse amid a backdrop of global financial panic. Pillows’ observation is based on a technical analysis of charts: the same liquidation patterns are observed, suggesting an unfinished bearish dynamic. If the comparison holds, a new phase of decline could shake the market in the coming days or weeks.

This scenario contrasts with optimistic predictions that see ETH bouncing back to 3000 dollars, a level it briefly touched in early February before encountering strong selling pressure. However, this anticipated drop could take the asset back to critical price points last seen during the 2020 bear market.

Despite this pessimistic short-term scenario, Ted Pillows shows a certain optimism about Ethereum’s long-term trajectory. He highlights that “ETH will reach 10,000 dollars during this cycle,” which would represent a 530% increase from its current price of around 1880 dollars.

However, this bullish forecast relies solely on technical indicators and does not take into account fundamental elements that could weigh on the asset’s valuation. Indeed, Ethereum is currently facing massive outflows from ETH ETFs, amounting to 22 million dollars. The iShares Ethereum Trust from BlackRock (NYSE:BLK), which was supposed to be a growth catalyst, is paradoxically one of the hardest hit.

Recent decisions by the Ethereum Foundation, such as the overhaul of its governing structures and its increased reliance on DeFi protocols like Aave (CRYPTO:AAVE), indicate an attempt at strategic repositioning. However, will these internal adjustments be enough to reassure investors as competing blockchains continue to gain ground?

Ethereum is currently walking a tightrope in the crypto market. On one side, technical analysis points to a risk of decline, which could bring ETH back to critical levels. On the other side, optimistic predictions see this drop as a simple step before a rebound to new highs.

The central question remains Ethereum’s ability to overcome selling pressure and enhance its attractiveness against competition. Such a dynamic from ETFs, the strategic choices of the foundation, and the overall market sentiment will be key elements in determining whether this anticipated drop marks the end of a bull cycle or the last opportunity to buy before a historic surge.