TLDR: Ethereum (ETH) Continues to Face Downward Pressure as It Trades Near Its Lowest Levels

Ethereum (ETH), the world's second-largest cryptocurrency, continues to face downward pressure as it trades near its lowest levels since late 2023.

Ethereum price hovered near its lowest point since late 2023 on Monday, continuing to face strong selling pressure.

The digital asset struggled to regain momentum after losing more than 57% of its value since December 2024. It is currently trading at $1,904 below the key $2,000 resistance.

This price point becomes critical for bulls who hope to reverse the extended downtrend.

But on-chain data from Balancer unveiled a different story with large investors, commonly known as “whales,” transferring over 130,000 ETH from exchanges in the past week alone.

This behavior usually signals accumulation rather than selling intentions.

When whales move their ETH from exchanges to private wallets, they typically plan to hold these coins for the long term. This pattern has been developing since Ethereum began trending downward.

Historical data suggests that large whale accumulations often precede significant market rebounds. However, ETH must still overcome major resistance levels before any trend reversal can be confirmed.

The exchange reserve chart shows ETH held on exchanges has declined to multi-year lows, around 18.8 million tokens.

This decrease in exchange reserves indicates that more investors are moving their ETH to self-custody or staking solutions. Lower exchange reserves generally mean less ETH is available for immediate selling.

This supply reduction could potentially support price stability once selling pressure fades.

Technical analysis of ETH’s daily chart shows the 200-day moving average is around $2,900, indicating strong bearish sentiment as the price is still far from reaching this technical indicator.

On the 4-hour chart, ETH has broken out of a descending wedge pattern, which could signal a potential trend reversal if buyers step in with enough strength to push the price higher.

The Relative Strength Index (RSI) shows oversold conditions on the daily timeframe, suggesting a short-term bounce might occur in the coming days as sellers become exhausted at lower levels.

Standard Chartered has recently adjusted its outlook on Ethereum. In a report on Monday, the bank slashed its year-end 2025 price target for ETH from $10,000 to $4,000.

Standard Chartered cited structural issues affecting Ethereum’s growth. The bank noted that Layer 2 blockchains, which were designed to improve Ethereum’s scalability, may have unintentionally reduced ETH’s market capitalization.

For instance, Coinbase’s Layer 2 solution, Base, has reportedly reduced Ethereum’s market cap by approximately $50 billion. Analysts expect this trend to continue unless the Ethereum Foundation makes proactive changes to its commercial direction.

While Standard Chartered still expects ETH to recover from current levels, they predict it will continue to underperform compared to Bitcoin (BTC). The bank forecasts the ETH/BTC ratio to decline to 0.015 by the end of 2027, reaching its lowest level since 2017.

For a bullish outlook on Ethereum to be realized, bulls must quickly reclaim the $2,000 level. A sustained move above this resistance could set the stage for a rally toward higher levels, potentially testing the $2,200-$2,400 range in the upcoming weeks.

However, if ETH loses current support levels, the next major liquidity zone lies around $1,600. A breakdown below $1,750 might trigger further selloffs, extending the bearish phase and delaying any signs of recovery.