Ethereum Price Plunges Below $1,900 Amid Market Turmoil

Ethereum price extended its losses on Mar. 11, falling 9% to $1,888. The second-largest cryptocurrency has now dropped over 30% in a month and 50% over the last three months

Ethereum price extended its losses on Friday, plunging 9% to $1,888 as the second-largest cryptocurrency continues to sell off sharply.

The post Ethereum Price Plunges 9% as Key Support Fails, Could Drop to $400, Warns Analyst appeared first on Tokenhell.

Despite charting a recovery from lows of $1,000 in March, Ethereum price has now dropped over 30% in a month and 50% over the last three months.

This downturn has raised concerns about a deeper market downturn, especially with several key support levels breaking.

Breaking Down: Ethereum Price Faces Multiple Challenges

As the broader crypto market experiences heightened volatility, total liquidations in the past 24 hours reached $246 million, according to Coinglass.

Among the pressing issues is the breakdown of a long-term trendline, which crypto analyst Ali Martinez warns could open the door for a deeper decline.

“If sellers can manage to keep pushing lower and break the lower parallel channel line, then we could retest the Fib level at $1,250,” he explained.

This view is supported by the Realized Price at $2,060, which is being tested, according to analyst Ali Charts.

"If this Realized Price holds, we might see a bounce back up towards the Fib level at $2,523, aiming for a retest of the parallel channel resistance, which is currently around $2,600, according to Fib levels, on MVRV Pricing Bands, if the Realized Price fails to hold, the next major Fib level provides support at $1,440.

"If this level breaks, we could see a continuation towards the Fib level at $1,250, which is around $900, providing a final point of resistance before a potential rebound," he added.

Unlikely Scenario But Not Impossible

Going even further, Quit, vice president of blockchain at Yuga Labs, envisioned an extreme scenario where Ethereum could plummet to a range of $200-$400.

In a Friday post on X, he questioned whether the downturn was only beginning, considering that a true bear market usually results in an 80–90% drawdown from the peak.

“Is this really the beginning of the bear market? Because if it is, and we know that bear markets see an 80–90% drawdown from peak to trough, then we've much further to fall. From the all-time highs, we're looking at a range of $200–$400 for optimal entry based on historical trends, he stated.

suggesting that a move to $1,500 would be a "no brainer" if the Fib level holds. However, Quit argued that many traders are focused on the $1,500 support, while historical trends suggest otherwise.

“If this is a full-scale bear market, ETH has much further to fall. But if we're seeing the lows of the bear market, then we're close to finding a good entry point optimal for optimal return over the long term optimal return over the long term

Huge investors are adjusting their strategies. Lookonchain flagged a major Ethereum Foundation transaction involving 30,098 ETH (~$56.08 million) being deposited into MakerDAO to lower its liquidation price. The foundation’s wallet now holds 100,394 ETH ($182 million) on Maker, with a liquidation threshold of $1,127.

At the same time, an early Ethereum ICO whale transferred 7,000 ETH (~$12.94 million) to Kraken, a move often interpreted as a sign of impending sell pressure. These transactions indicate that large holders are either preparing for lower prices or securing their positions amid the uncertainty.

Moreover, DefiLlama data shows that around $366 million in DeFi loans could face liquidation if ETH drops another 20%, adding additional risks to the current sell-off.

Stiff Competition and Declining Network Activity

Data from SoSoValue indicates that spot Ethereum exchange-traded funds (ETFs) have seen net outflows of $278.55 million over the past week, suggesting weakening institutional demand.

The absence of staking incentives in these ETFs makes them less attractive compared to decentralized finance (DeFi) yields of around 4.5%.

Meanwhile, cheaper and faster blockchains, such as Berachain and Hyperliquid, are eating into Ethereum’s DeFi dominance, attracting billions in total value locked.

Will Ethereum Price Recover or Slide Further?

The ability of Ethereum to reclaim its previous support at $2,600 remains uncertain. Bulls need to push ETH above $2,523 to regain momentum, according to analyst Junaid Dar.