The largest altcoin, Ethereum (ETH) 
$2,498, along with other leading cryptocurrencies, experienced a significant drop on Tuesday. The decline was driven by diminishing expectations regarding the U.S. Strategic Cryptocurrency Reserve and escalating trade tensions. U.S. President Donald Trump announced that additional tariffs on Canada, Mexico, and China would take effect within hours. As a result, Ethereum’s price plummeted to $2,050, marking a 15% decrease, reaching levels not seen since November 2023. How much further can the largest altcoin fall?
Reasons Behind Ethereum’s Decline and Poor Performance
Ethereum has been in a steady decline for the past three months. Its performance against Bitcoin (BTC) 
$77,652 has been weak, indicating a reduction in investor interest. Macroeconomic uncertainties, inflation concerns, and weakness in stock markets have also contributed to this downturn.
Recently, open positions in Ethereum futures have decreased by 10.8%, falling to $18.8 billion. Additionally, according to Coinglass, $209 million worth of positions were liquidated in the last 24 hours. Data from Polymarket indicates a 76% probability that Ethereum could drop to $1,900 by the end of March.
Is This Ethereum’s Worst First Quarter Ever?
Ethereum has dropped 36% since the beginning of the year, heading toward its worst first quarter in history. Analyst Venturefounder noted that if the altcoin falls to $1,600, it would demonstrate the worst first-quarter performance ever recorded. Even during the bear market of 2018, such a severe decline was not witnessed.
The nearest support level for ETH is at $2,020. If the price dips below $2,000, it risks falling to $1,880. A deeper sell-off could see prices decline to $1,750 and potentially to the significant support level of $1,640.
For some analysts, a drop to $2,000 could present a long-term buying opportunity. With volatility expected to persist in the cryptocurrency market, it is believed that investors looking to enter at lower levels may return. However, market indicators continue to signal negativity, suggesting that potential recoveries will depend on overall market conditions and Ethereum’s network activities.
