Ethereum price has taken a significant hit in March 2025, dropping over 20.4% in the past 30 days, raising concerns among investors anticipating further losses. The crypto community is raising alarms over this sharp decline.

Ethereum is one of the most influential cryptocurrencies, meaning its performance often reflects broader market trends. Many investors are now looking for signs of a market downturn.

Key-Takeaways:

• In March 2025, Ethereum broke key support levels, dropping over 20.4% and dragging the broader altcoin market down with it.
•  Increase adoption and bank-issued stablecoins could support Ethereum’s recovery, particularly if the U.S. dollar strengthens and gold prices rise.

The Extent of Ethereum Price Decline

Since early March, the Ethereum price trajectory has remained consistently weak. Ethereum, currently priced around $1,877.46, has already declined 15.48% (from approximately $2,216.71) since the start of the month. It has shaken investor confidence in this downward trend.  

Ethereum reached a high of $2,550.37 earlier this month, now trading 26.59% lower than its March peak. Such volatility highlights the uncertainty in the crypto market.

Investors were particularly concerned that Ethereum failed to hold the key $1,900 support level, which many analysts viewed as a critical threshold. A further breakdown of this range has intensified bearish sentiment.

According to macro strategist Mike McGlone, Ethereum’s current price movement may signal a sharp decline toward $1,000. It would be a stark change to market dynamics if such a drop were to occur.

#Ethereum vs. $2,000 may guide the way for risk assets. Is $1,000 next?
Full report on Bloomberg here: https://t.co/vsuw0mMdL2 {BI COMD}#commodities #stockmarket #cryptos #macroeconomics @BBGIntelligence pic.twitter.com/soxMwnyIPC

— Mike McGlone (@mikemcglone11) March 28, 2025

Correlation with Traditional Markets

Several experts argue that Ethereum’s price movement often correlates with broader financial markets. This correlation highlights how macroeconomic factors influence financial markets.

The Nasdaq 100 has declined nearly 5.59% since early March, while the S&P 500 has fallen 4.48% over the same period. The fact that Ethereum price is not an outlier in its downward trend means that it’s just part of a bigger correction moving across risk assets.

The rise of the Dollar Index and gold prices has directly affected the Ethereum price due to a shift away from risk-on assets. Investors are then looking for safer alternatives.  

Gold has been in an uptrend for over three months, reaching a record high above $3,080 per ounce. Meanwhile, the Dollar Index appears to have ended its decline from January 11 to March 18, adding further pressure to cryptocurrency markets. 

Impact on the Broader Cryptocurrency Market

Ethereum decline has significant implications for the entire altcoin market. Its movements typically set the tone for other digital tokens.  

Among major cryptocurrencies, Ethereum has led the 30-day downtrend. This leadership in decline is a cause for concern of other altcoins falling down the same path as Ethereum.  

Current data shows declines of 4.5% for XRP, 1.65% for BNB, 9.4% for Solana, 16.7% for DOGE, 10.6% for Chainlink, and 12.8% for Avalanche. The market-wide’s caution is growing.

It’s particularly when market analysts are looking at $2,000 for Ethereum price as it’s a psychological barrier. A key turning point of this level.  

ETH’s current price is around 6.52% away from this line, and if the price doesn’t regain it, experts predict it will hasten its descent toward the $1,000 target pointed out by McGlone. There are usually cascading effects in cryptocurrency markets when there is a break of major support levels.

While the Ethereum price decline is worrisome, the trading volume is up 36.92% and the 24h trading volume is $14,485,952,702. Such a spike indicates unusually high activity in the market.

The present volume is at one time as high as $19,036,497,274, which reveals that even when the price is sagging, market interest is still solid. Perhaps some investors are selling, but others see the current price of Ethereum as an opportunity to buy.

Viewed from the medium and long term, the picture is a bit more complicated. The sentiment of the market continues to be divided.  

Experts suggest that Ethereum’s current price decline may be a temporary correction before a potential rebound. Short-term weakness doesn’t denote a long term weakness.

Ethereum’s strong fundamentals, like growing adoption and the possibility of bank-issued stablecoins on the network are cited as the factors that may help the future price recovery. The developments could help to build up investor confidence again.

As a side note, Bitcoin was at or near $4,000 four months ago, and at $2,400 before Trump got elected in early November 2024. Ethereum’s recent struggles are in evidence in this sharp decline.  

Then, this dramatic drop demonstrates just how much the second largest cryptocurrency has had trouble in the past months. It has all taken place in a highly uncertain market.  

But it tends to be history repeating itself in that in stressful times, Bitcoin becomes the first lender called upon, and alternative cryptocurrencies like Ethereum will react in kind to any subsequent rebound. With a Bitcoin rebound, the entire crypto market may make a bigger comeback.

Conclusion

The Ethereum faces a crucial period ahead, short-term indicators remain weak, but long-term fundamentals suggest potential upside. Its next move will be influenced by a lot of key support levels and economic trends. Ethereum is at a pivotal moment in the coming weeks, with its direction hinging on key support levels and economic trends.