Ethereum’s market strength: What draws investors back to ETH, time and again

• Ethereum’s price history reflected resilience in the latest percentage drawdown.
• The altcoin’s resilience hinged on navigating volatility, supported by the 2024 Dencun upgrade and ETF approvals.

Ethereum [ETH] has long been a dominant force in the cryptocurrency market, demonstrating resilience through multiple market cycles.

Despite extreme volatility, ETH has shown an ability to recover from steep declines, making it a crucial asset for traders and investors.

Analyzing percentage drawdown from ATH chart

Ethereum’s price history reflected resilience in the latest percentage drawdown. During the 2022 bear market following the FTX collapse, ETH saw a sharp -80% decline.

However, as of the 9th of March 2025, the percentage drawdown stabilized at -53.11%, with ETH trading near $2,300.

Analyses showed repeated patterns of deep corrections followed by strong recoveries. In 2018, ETH dropped by -70%, and in 2021, it declined by -60%, yet both times, it rebounded.

Source: IntoTheCryptoverse

The 2024 Dencun upgrade and ETF approvals contributed to Ethereum’s latest recovery, reinforcing the asset’s long-term strength.

Whale accumulation during dips also played a role in boosting investor confidence. Analyses predicted a potential ATH breakout if ETH surged to $3,000-$4,164.

However, regulatory challenges or market manipulation could trigger another -40% to -50% correction. Over the long term, ETH’s resilience suggested the potential to surpass $4,000, barring significant market disruptions.

The volatility heatmap’s role

Ethereum’s resilience tied closely to the Binance ETH/USDT liquidation heatmap. Previously, the heatmap displayed ETH trading between $2,050 and $2,250 over a 24-hour perpetual frame.

Source: CoinGlass

This mirrored Ehereum’s drawdown chart, where -53.11% in 2025 showed stabilization near $2,300. Historical -80% drops in 2022 aligned with similar $2,100 liquidations, reflecting market stress.

The heatmap’s $50-$100 price swings echoed ETH’s -60% to -70% drawdowns in 2018 and 2021.

This suggested ETH’s resilience hinged on navigating volatility, supported by the 2024 Dencun upgrade and ETF approvals. A breakout above $2,200 could push ETH toward $3,000-$4,164 by year-end.

Conversely, a drop below $2,100 might cause a -40% drawdown to $1,800.

ETH’s volume changes show more insight

Daily volume trends offered additional clarity on Ethereum’s market behavior. The volume chart, spanning from the 13th of February to the 6th of March, revealed a sharp rise from 50k to 450k in trading volume.

By the 19th of February, volume peaked at 200k before briefly declining to 100k on the 25th of February.

A renewed surge pushed volume to 400k by the 6th of March, coinciding with Ethereum’s -53.11% drawdown stabilization at $2,300.

Source: X

Historical comparisons showed that ETH’s steep 2022 drop to -80% aligned with low trading volumes of 50k-100k, indicating weak market participation.

In contrast, the recent volume spike to 300k-450k suggested increased investor interest, likely driven by the Dencun upgrade and ETF-related inflows.

Similar trends in 2017-2018 marked the start of bullish cycles, with whale accumulation supporting a rise toward $3,000-$4,164.

However, a drop in trading volume to 150k-200k could indicate a potential price decline of -40% to -50%.

Long-term stability in high trading volume remained a key factor for Ethereum’s ability to surpass previous ATH levels, though a significant decrease in participation could challenge support at $1,500.

Finally, Ethereum historical patterns underscored its resilience in the face of market downturns, regulatory challenges, and liquidity shifts.