Ethereum’s recent downward trend continues unabated, with its value sinking to fresh lows of around $1,400, a drop not seen since the early days of 2023. This persistent selling pressure has significantly dented market sentiment, with a growing number of investors expressing fears that the toughest times may still be ahead. Ethereum has seen a decline of over 65% from its peak in 2024, and the lack of a solid support level has compounded the issue, with the wider market weakness and increasing macroeconomic instability adding to the uncertainty.
Despite this, some analysts are optimistic that a turning point may be imminent. Renowned analyst Ted Pillows believes that Ethereum is now well into a capitulation phase and that, although there may still be a final 5-10% decline to navigate due to the recent frailty in equity markets, the larger market structure could be paving the way for a rebound.
Pillows identifies a potential shift in Federal Reserve policy as a significant catalyst for this change. With traditional markets under strain and volatility on the rise, an adjustment in monetary policy could provide a much-needed respite. Historically, alterations in the Fed’s stance have proven beneficial to risk assets. If such a shift occurs, it could stabilize Ethereum and kickstart a recovery from its recent lows, though not without first weathering a final wave of fear and uncertainty.
Trading at $1,450 after experiencing a sharp 20% decline in mere hours, Ethereum has suffered one of its most significant drops this year. This fear-driven sell-off has rattled investor confidence, with pessimism now reigning supreme in the market. Ethereum, which was projected to spearhead the altcoin rally in 2025, has failed to meet these expectations, instead, continuing to disappoint as bearish momentum builds and selling pressure escalates.
Furthermore, broader market conditions are exacerbating the situation. Issues like trade war tensions, policy uncertainty from the Trump administration, and growing fears of a global recession are pulling down both equities and cryptocurrencies. With the S&P 500 already in sharp decline, the apprehension of a wider financial contagion is mounting.
Pillows’ analysis suggests that Ethereum’s current plunge is a full-on capitulation. However, he believes the market could be close to a turning point. “Maybe there’s one last dump left, but after that, it’ll bounce,” Pillows stated. The primary reason for this lies in a potential pivot from the Federal Reserve.
With the S&P 500 down more than 10% in just two days and volatility increasing, a further decline could trigger an emergency response from the Fed. Historically, rate cuts and renewed quantitative easing (QE) have proven beneficial for risk assets like Ethereum. If a pivot occurs, Ethereum could rebound quickly from its current levels, albeit after one final shakeout.
Ethereum’s value has dipped to $1,410 after losing the crucial $1,800 support level, sparking a wave of aggressive selling and market-wide panic. With no immediate support level below its current value, bearish momentum seems firmly in control as Ethereum struggles to regain its footing.
However, recovery hopes remain, contingent on a swift reclaiming of the $1,800 level. A strong bounce back above this mark could signal that capitulation is complete, and could reignite buying interest from investors currently on the sidelines. Until then, Ethereum remains vulnerable, and any attempts at an upswing will likely face resistance unless underpinned by broader market strength or a decisive macro shift.
The bulls have a narrow window of opportunity to reverse the momentum before deeper losses become a reality.
