As the crypto market witnesses a large liquidation of $1.43 billion over the past 24 hours, the biggest altcoin, Ethereum, is back under the $1,500 mark. Currently, the ETH token trades at a market price of $1,478, recording a 24-hour price drop of nearly 20%.
Ethereum holds a market cap of $178 million as the crypto market enters a phase of extreme fear. Will the declining market conditions drop Ethereum’s market price to the $1,000 mark? Let’s find out.
Ethereum Price Analysis Warns $1,000 Test
In the weekly chart, the Ethereum price trend showcases a breakdown of the 200-week EMA line. The declining trend has breached the crucial support level of $1,542.
Currently, the Ethereum price is trading at a price level last seen in early March 2023. The breakdown of the growing bearish influence of the 50-100-day EMA line. Furthermore, the Moving Average Convergence Divergence Technical Indicator signals a bearish trend at hand.
The MACD and signal lines maintain a negative trend with intense bearish histograms. Furthermore, the 2020- and 200-day EMA lines are on the verge of giving a negative crossover.
A short-term bearish trend is undermining the prevailing long-term trend. The breakdown of the 23.60% level at $2,371 triggered a cascading effect. This resulted in multiple bearish candles and is approaching the crucial support of $1,000.
ETFs Witness Massive Outflows For Six Consecutive Weeks
Amid the growing bearish influence on Ethereum, the institutional support continues to decline. Over the last week, the Ethereum support ETFs recorded a weekly total net outflow of $49.93 million.
This marks the sixth consecutive net or negative weekly outflow. However, the net outflow over the past six weeks, since late February, now accounts for nearly $800 million. Notably, the accumulated total net inflow of the Ethereum spot ETFs accounts for $2.36 billion as of April 4, 2025.
Bulls Struggle With Ethereum Futures Amid Supply Tsunami
As the liquidation in the crypto market increases, the Ethereum derivatives have witnessed a 24-hour liquidation of $419 million. The long liquidations account for nearly $350 million, with the short liquidations nearing $70 million.
The massive liquidations have shaken out multiple traders in the market. The Ethereum open interest is down by 16.85%, standing at $17.10 billion. Amid the massive volatility, giant whales are struggling to maintain their long positions.
As per a recent tweet by SpotOnChain, the whale 0x7d6 is currently holding 270,000 ETH worth almost $400 million. The whale repaid 3.52 million DAI and deposited 60,000 ETH to bring the liquidation price down to $912.
Giant whales are scrambling to stay afloat with their $ETH long positions!
1️⃣ Whale “0x7d6” holding 270K $ETH ($395M) on #Maker repaid 3.52M $DAI and deposited 60K $ETH to bring their liquidation price down to $912.
2️⃣ Whale “0xab7” with 49,018 $ETH ($72M) on #Aave sold 7,976… https://t.co/RGIssoMVr6 pic.twitter.com/vYJKmF3UlE
— Spot On Chain (@spotonchain) April 7, 2025
This reflects a new effort from the whale to maintain the long positions, anticipating a potential bounce back. Furthermore, the whale 0xab7 holds 49,018 ETH worth $72 million on AAVE.
The whale had sold 7,976 ETH worth nearly $11.6 million to reduce the debt and leverage. The liquidation trend for the whale remains imminent as ETH drops to $1,418.
Is a Recovery Possible for Ethereum?
As the declining trend warns of a steeper correction on a longer term, the short-term lower price direction in the weekly candle hints at a potential turnaround. This could help Ethereum float above the $1,542 broken support level.
In such a case, a potential retest of the line at $2,266 will become a near-term possibility. On the flip side, the crucial support level for Ethereum remains a zone extending from the $1,000 mark to $1,143.
Source: https://www.cryptonewsz.com/crypto-market-crash-drops-ethereum-under-price-1500-is-1000-next-on-bearish-radar/