Ethereum (ETH) has experienced a significant drop of nearly 10% in the past 24 hours, falling from $2,721 on February 24 to $2,313 earlier today. This decline comes amidst a broader sell-off in the crypto market, which has seen a total market cap loss of approximately $300 billion. ETH’s market cap has also taken a hit, plummeting from $340 billion to as low as $286 billion in just two days.
Crypto analysts are closely monitoring the situation, with many pointing to the $2,300 level as a critical support level for Ethereum. If ETH fails to hold this level, it could face further losses, with the next major support level near $1,100. Merlijn The Trader, a prominent crypto trader, emphasized the importance of ETH maintaining the $2,350 price level, describing it as the “make-or-break” zone for the asset.
Fellow analyst Ali Martinez echoed these concerns, highlighting $2,300 as a crucial support level for ETH. According to a 3-day chart, this level is near the bottom of the trading channel that ETH has been moving within since November 2024. Daan Crypto Trades also noted that ETH has struggled to break through resistance at $2,800, with a recent sell-off following Bybit’s announcement of restoring users’ ETH balances after a hack.
The prolonged poor performance of ETH has raised doubts about the possibility of a full-blown altseason, a market phase where altcoins deliver extraordinary returns. Despite the current market sentiment, some industry leaders remain optimistic about a strong rebound for Ethereum. CryptoQuant CEO Ki Young Ju suggested that favorable crypto regulations under US President Donald Trump could trigger a “large-cap ETF altseason,” potentially driving ETH’s price higher.
Similarly, crypto analyst Ted provided some optimism for altseason enthusiasts, pointing to a golden cross formation in the altcoin market cap. The last time this occurred, the altcoin market cap surged by 500% in just a few months, leading Ted to believe that an altseason could soon become a reality.
However, recent on-chain analysis does not inspire much confidence in ETH’s short-to-medium-term price action. At the time of writing, ETH is trading at $2,418, down 9.5% in the past 24 hours. Despite the challenges facing Ethereum, some industry experts remain hopeful for a turnaround in the near future.