Ethereum (ETH) experienced a harsh decline to worry about investors. ETH, which decreased to $ 1.835 at the weekend, has seen its lowest value since March 13th. The decline of Ethereum, which has suffered from 55 %since the 2024 summit, is supported not only for technical reasons but also with ecosystems and macro problems. Can Ethereum decline to $ 1,500? Here are the critical details that trigger the fall…
Continuous exit in Ethereum ETFs: Trust is shaken
The first reason for the decrease in the price of Ethereum is the ongoing outlets in Spot ETFs. According to Sosovalue data, a net output was experienced every day, except for only 2 days during March. In total, only 2.4 billion dollars of entrance, the existence size of the funds remained at $ 6 billion.
The fact that Wall Street investors did not show enough interest to ETH ETFs led to the failure of these vehicles. Most investors prefer to buy directly ETH instead of ETF because they can get approximately 3 %return. This is seriously undermining the ETF request.
Layer-1 and Layer-2 competition forces ETH
Another factor that contributes to the weakening market power of Ethereum is the emergence of strong competitors. Layer-2 solutions such as Base and Arbitrum offer faster and low-cost transactions. This leads to users to choose alternative solutions instead of Ethereum.
On the other hand, Layer-1 networks such as Solana, Sui and BNB Chain narrow Ethereum’s market share. ETH, which can not solve scalability problems, is behind in this race. Most of the analysts predict that the decline will continue for this reason. For example, Standard Chartered reduced the target price by 60 %and drew to $ 4,000.
Technical indicators give an alarm for Ethereum: $ 1,500 at the door?
Ethereum’s technical appearance also supports the decline. The “triple-top” formation, which was formed by the fact that the price did not exceed $ 4,036 three times during 2024, became a harbinger of a great danger. The $ 2.113 support, the neckline of this formation, was also broken.
ETH is also hanging under 50 and 200 weeks of EMAs. The “Death Cross” formation, which can be formed by intersecting these two averages, is one of the most powerful signals in the market. In addition, ETH, known as the golden ratio of 61.8 %fibonacci level ($ 1.940) went down. RSI and MACD indicators are also negatively. The formation of the bear flag formation indicates that the decline may continue.
$ 1,500 critical level is on the agenda
When all these technical and basic factors we write as Kriptokoin.com come together, the expectation that Ethereum may decline to $ 1,500 is strengthened. This level is a psychologically important support point. If the sales pressure persists, the decrease in this level may be inevitable.
However, if Ethereum manages to increase the resistance level of $ 2,113, the decline scenario may become invalid. In the short term, it is of great importance that investors pay attention to these two levels: $ 1,500 support and $ 2,113 resistance.
