Key Insights:
Ethereum is seen as the worst-hit crypto among major cryptocurrencies in a survey of 4300 respondents.
ETH fell 65% from $4000 to $1400 in just over three months.
Reasons for all include ETF outflows and selling in the retail markets.
However, the recovery in Ethereum is also underway, with ETH going up $200 within the last 48 hours.
A survey conducted by crypto chart expert Ali Martinez showed that almost 70% of people in a survey (conducted on 4300 people) believed that Ethereum was the largest loser in the current crypto market correction.
Ethereum has been the worst-hit cryptocurrency in the current markets falling, from $4000 to $1400 a couple of days ago. The fall was accompanied by one of the largest sell-offs in ETF markets as well as in the retail markets.
It has lately broken its support level for the bull market at $1800, followed by which the crypto fell another $400, reaching $1400 on 9 April. Going ahead, if this rate of fall continues, Ethereum might break down below $1000 which could send its price to a low of $800.
However, markets also indicate that Ethereum might recover, given the US Fed's indication of a possible rate cut in May 2025. In his latest series of tweets, Donald Trump has also claimed a possible rate cut in May 2025, calling the US Federal Reserve very slow to respond to the ongoing liquidity crisis.
Ethereum’s 63% fall over the last quarter clearly has spooked the market. At present Ethereum is already in an oversold territory and could gain clearly from this stage. At Voice of Crypto, we believe that Ethereum has already formed its bottom at $1400, based on its recent price behavior.
Ethereum ETFs are disliked in the ETF markets only because they are unable to provide staking benefits, a critical source of income for Ethereum holders in the spot markets. If these Ethereum ETFs under Donald Trump's Administration are allowed to re-file and provide staking benefits, we might see a sudden resurgence in demand for them.
Ethereum ETF Outflows
Coinglass
Our analysis suggests that it might recover very soon in the crypto markets and a complete change will aid this recovery in crypto market regulations around the world. In the long term, we expect ETH to establish itself as the largest cryptocurrency, possibly beating Bitcoin by the turn of this decade.
Ethereum's price has been showing an extremely weak structure, but on the positive side, the price has already reached an oversold zone. The longer the price lingers in the oversold zone, the higher becomes the recovery potential. At present Ethereum has already recovered above $1600, and if this recovery lasts, it could soon cross over $2000 by the end of next week.
ETH USDT Charts
Tradingview
Ethereum's technical charts also show a recovery in its RSI levels from the level of 30 to 37 at press time. Given the sharp recovery, there could be a pullback rally in Ethereum, one which, could take its price up to $1800. Beyond this, there is a potential that the price might remain stuck for some time because of high resistance at these levels.
Given the current market volatilty users to avoid any buying the dip. The markets have room for some more correction before recovery sets in the crypto markets.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.