Ethereum price made a strong bearish breakdown during the weekend, reaching a low of $1,835, its lowest level since March 13. It has plunged by over 55% from its highest level in 2024. Why Ethereum price has crashed Ethereum has crashed because of its ecosystem challenges and the ongoing macro factors. Internally, Ethereum has plunged because of the ongoing outflows in the spot Ethereum ETFs. Data by SoSoValue shows that ETH ETFs have had net outflows in all days this month other than March 2 and 28. These funds have had a cumulative net inflow of just $2.4 billion, bringing their net assets to $6 billion. Ethereum ETFs have largely failed because of a lack of demand from Wall Street investors. Most of these investors prefer holding and staking ETH, which earns them a good staking return of about 3%. Read more: Ethereum price prediction after the $238 billion wipeout ETH price has crashed because of the soaring competition from the layer-1 and layer-2 industry. Most of its competition is coming from companies layer-2 networks like Base and Arbitrum. These networks are known for having higher transaction speeds and low costs. Ethereum is also seeing more competition from layer-1 networks like Sui, Solana, and BNB Chain. These factors explain why many analysts have warned that ETH price could crash further. For example, Standard Chartered analysts have lowered their target by 60% to $4,000. ETH price also dived because of the recent leadership crisis at the Ethereum Foundation. Ethereum price crashed because of weak technicals ETH price chart by TradingView Further, technicals suggest that ETH price has more downside to go. The weekly chart shows that Ethereum price made a risky pattern known as a triple-top in 2024. This pattern formed as Ether failed to move above the key resistance point at $4,036 three times. It has now crashed below the important support level at $2,113, the neckline of this pattern and its lowest point on August 5. Ethereum price has plunged below the 50-week and 200-week Exponential Moving Averages (EMA). A crossover of these two averages will be a death cross, one of the riskiest patterns in the market. ETH price has also plunged below the 61.8% Fibonacci Retracement, commonly known as the golden ratio at $1,940. The Relative Strength Index (RSI) and the MACD indicators have all pointed downwards. Ethereum coin has also formed a bearish flag chart pattern, a popular continuation sign. Therefore, Ethereum price will likely continue falling as sellers target the key support at $1,500, a psychological point that is about 20% below the current level. A move above the key resistance point at $2,113 will invalidate the bearish outlook. Read more: Ethereum price prediction March: Is another 50% crash possible? The post Ethereum price prediction: here’s why ETH is heading to $1,500 appeared first on Invezz
