Ethereum Price Plummets 13% Amid Intense Market Volatility, Bulls Eye $2,923 Mark

Highlights:

• Ethereum price plunges 13% to the $2,066 mark following increased market volatility. 
• Its daily trading volume has plunged 12% to $34.07B, highlighting a fall in market activity.
• The crypto analyst highlights the potential downside to the $1,250 mark. 

The Ethereum price has plunged 13% to $2,066 mark, as the crypto market crashes. Its daily trading volume has notably plummeted 12% to $34.07B, showing a recent fall in market activity. Ethereum’s price has swung wildly after news of a national crypto reserve. It briefly surged, then crashed hard. This sharp drop wiped out recent gains and raised fears of a longer decline.

Despite the negativity, some investors view this dip as a chance to buy. They argue Ethereum is undervalued, hinting at potential future growth. This is evident as the U.S. President continues to accumulate more ETH. 

🚨BREAKING:

TRUMP KEEPS ACCUMULATING MORE $ETH IN RECORD PACE.

HE KNOWS SOMETHING 👀 pic.twitter.com/Squ6eKgfpJ

— CryptoGoos (@crypto_goos) March 4, 2025

With recent market volatility, analyst Ali Martinez has highlighted a potential downside to $1,250. According to Martinez’s analysis, holding above its critical support zone offers ETH the potential for a substantial rally toward resistance levels. However, ETH seems to be breaking out of a parallel channel, potentially setting up a move to $1,250.

#Ethereum $ETH seems to be breaking out of a parallel channel, potentially setting up for a move to $1,250! pic.twitter.com/mciXzLJ8Ea

— Ali (@ali_charts) March 4, 2025

Ethereum Price Outlook

Ethereum price daily chart indicates a prolonged bearish trend. The price is currently trading around $2,066, reflecting a 13% decline for the day. The price remains below both the 50-day MA ($2,852) and the 200-day MA ($2,923), signaling continued selling pressure. Further, the death cross in the market suggests a long-term bearish trend if the bulls don’t regain dominance.

Additionally, the downward slope of both moving averages suggests a lack of bullish momentum, which could lead to further declines. The price is testing the lower boundary of the descending channel, and a failure to hold this level could cause the Ethereum price to push toward deeper declines. If sellers continue to dominate, a break below $2,066 support will trigger further downside risks, potentially leading to an extended bearish phase.

Can Ethereum Price Rebound Above Key Levels?

On the other hand, if buyers manage to defend the current support zone, a minor rebound toward the 50-day MA at $2,852 could be expected. However, for a significant bullish reversal, ETH must reclaim the 200-day MA at $2,923 and break out of the descending channel. 

The key resistance level remains at $2,541, $2,852, and the psychological zone at $2923, which aligns with the upper boundary of the channel. A breakout above this barrier would confirm a bullish reversal, potentially driving prices toward $3,142 in the medium term. However, given the current bearish structure, such a move would require strong buying momentum and increased trading volume.

Technical Indicators Suggest a Potential Rebound in the ETH Market

A closer look at the technical indicators shows oversold conditions that may ignite a buy-back strategy. The Relative Strength Index (RSI) currently reads at 32. This is an undervalued zone, and the bulls may initiate a buy-back campaign to trigger a rebound. Despite the MACD indicator upholding a sell signal, traders can initiate a buying spree once the MACD flips above the orange signal line.  

Meanwhile, if ETH fails to sustain a recovery and sellers push the price below the $2,066 mark, bearish momentum could intensify, with ETH testing the $2,020 level. The declining trading volume suggests weak demand, making it difficult for bulls to stage a strong recovery unless there is a shift in market sentiment.

Traders should carefully watch price action around the current support level. In contrast, a bounce from current levels could provide a temporary relief rally, but unless the price breaks key resistance zones, the overall trend remains bearish.