Ethereum Technicals Not Looking Good: Will ETH Crash Further?

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Coinspeaker
Ethereum Technicals Not Looking Good: Will ETH Crash Further?

Ethereum ETH $1 867 24h volatility: 0.1% Market cap: $225.56 B Vol. 24h: $15.08 B is facing mounting challenges as on-chain data reveals significant selling pressure from whales, a sharp decline in its relative strength against Bitcoin BTC $84 681 24h volatility: 0.7% Market cap: $1.68 T Vol. 24h: $27.98 B , and a diminishing share in the decentralized finance (DeFi) market.

Multiple limiting factors have contributed to Ethereum’s underwhelming price performance, with ETH trading around $1,883 – substantially below the 20-day Exponential Moving Average (EMA).

Whales sold 760,000 #Ethereum $ETH in the last two weeks! pic.twitter.com/lpb6ZfIV1C

— Ali (@ali_charts) April 2, 2025

Whale Selloff and Activity Decline

According to crypto analyst Ali Martinez, large Ethereum holders have sold approximately 760,000 ETH in the last two weeks, a move that has likely contributed to the recent price weakness.

More alarmingly, the number of large ETH transactions has fallen by 63.8% since February 25, signaling a substantial drop in whale activity.

Since Feb 25, the number of large #Ethereum $ETH transactions has declined by 63.8%, signaling a drop in whale activity on the network. pic.twitter.com/DBKmYKAR3q

— Ali (@ali_charts) April 2, 2025

A slowdown in large transactions suggests that institutional players and major investors are either exiting the market or choosing to stay on the sidelines, meaning reduced liquidity, less market confidence, and weaker price support for ETH in the near term.

If whales continue to offload ETH at this rate, Ethereum may struggle to regain bullish momentum.

ETH/BTC Ratio Hits a 3-Year Low

Ethereum’s struggles are further highlighted by its weakening performance relative to Bitcoin.

The ETH/BTC ratio has dropped to 0.022, its lowest level since December 2020. This also marks a 73% decline from its 0.085 peak in September 2022.

From this angle, the $ETH / $BTC trading pair could be heading to 0.0020! pic.twitter.com/6kbCwP5krT

— Ali (@ali_charts) April 2, 2025

At a current price of $1,880, Ethereum is down 9% over the past week and 62% from its all-time high of $4,890 in November 2021.

In contrast, Bitcoin has remained more resilient, trading at around $84,300, with only a 10% decline year-to-date (YTD). Meanwhile, Ethereum has plunged 46% YTD, indicating that investor confidence in ETH is waning.

Ethereum’s Shrinking Hold Over DeFi

Ethereum’s dominance in the total value locked (TVL) of DeFi protocols has also seen a notable decline. As of press time, Ethereum’s TVL stands at $50.68 billion, accounting for 52.76% of the total DeFi market.

However, this represents a decline from its 61.64% share in February 2024, suggesting that liquidity is flowing into alternative blockchains.

One of the biggest beneficiaries of this shift has been Solana, whose TVL has increased from 2.84% to 7.24%, bringing its total to $6.69 billion–a more than 2.5x increase in just over a year.

The rise of competing ecosystems underscores the growing demand for more efficient, lower-cost alternatives to Ethereum.

Technical Indicators: A Bearish Outlook?

Ethereum’s current technical indicators paint a bleak picture. According to CoinMarketCap, ETH is trading at $1,883.59, which is well below its 20-day exponential moving average (EMA) of $1,963.

A sustained position below the 20-day EMA often suggests continued bearish momentum and weak buying interest.