Ethereum Crashes 15% as Market Turmoil Worsens: Is $1,900 Next?

Ethereum dropped by 15% and reached $2000 its lowest price since November last year. When whales sold in large amounts the market crashed without breaking any old levels it had made after the election results.

Adding Ethereum to strategic reserves did not stop the market from declining further. ETH ETF distribution caused $51.36 million withdrawal from the funds.

Based on extreme market fear and high selling pressure strong defenses are needed at market levels. Ethereum would decrease towards $1,900 when buyers lose their position in this price range.

Trump’s Crypto Impact: Short-Lived or Market Shifting?

The crypto market experienced a brief rally when Donald Trump tweeted about potential reserves even though his suggestion proved short-lived. The rising market optimism made the total market value grow by 8% but this rally only lasted until the $3 trillion mark was reached.

However, this surge was short-lived. The crypto market drops 10.20% during my writing period to reach a total capitalization value of $2.78 trillion. The market suffered a $220 billion loss in 24 hours during its latest volatile movement.

ETH dropped 15% and reached an essential buying area which poses current obstacles for its recovery stage. Purchasing ETH below market value represents a good opportunity for investors who seek short-term price rises.

Ethereum’s Path to $1,900: How Likely Is It?

Data from blockchain shows buyers do not want to invest in Ethereum. The Coinbase Premium Index remains below zero to demonstrate poor U.S. institutional demand. Higher store of Ethereum on trading platforms along with a 5.50% drop in trading activity prove that buyers remain hesitant.

Because buyers avoid purchasing Ethereum it faces further price falls. ETH will likely fall to $1,900 while current supply and demand trends stay unchanged.

After reaching $168.13 million Ethereum long position sell-outs increased trading activity in the market. New positions worth $2 billion arrived before Troll attacks triggered an increase in Open Interest from $20.1 billion to $21.11 billion.

The market experienced increased chaos when traders fast sold their leveraged positions triggering an 8.39% decrease in OI. Futures traders rushed to close their Ethereum deals by taking either profit or loss which made the price movement more erratic.

Ethereum faces a downward trend because market players must sell first to get money back before purchasing can occur effectively.

Market events across all digital currencies will strongly affect where Ethereum goes next. When strong investors buy Bitcoin now it will help support Ethereum price movement. Current extreme fears about market conditions and weak investor support make it more likely that Ethereum prices will drop back to $1,900 range soon.