The cryptocurrency market has experienced significant volatility recently, leading to a notable pullback of over $200 billion across major tokens. Ethereum (ETH) has been one of the hardest-hit assets, with its price dropping below an important support level that had held firm for years. This dip has raised concerns about the future of Ethereum’s price, as technical indicators suggest that the ETH price could be heading towards $1500 if it fails to regain crucial support.

Ethereum’s Struggles in February and March

Ethereum’s struggles have been more pronounced than Bitcoin’s, especially during February and March. The price has been unable to recover in a meaningful way, even as other cryptocurrencies attempt to make up for recent losses. In fact, Ethereum’s price rally has been showing increasingly bearish signals, including massive bearish candles throughout Q1, something that has not been seen in the cryptocurrency’s history.

In March 2025, Ethereum-based exchange-traded funds (ETFs) have been trading 25% below their fair value, with over $370 million flowing out of Ethereum spot ETFs. This has raised concerns about Ethereum’s long-term outlook, as investors begin pulling their funds from Ethereum-related products. With Q1 coming to an end, Ethereum is facing amplified bearish pressure, and its sluggish recovery has further dampened sentiment in the market.

Breaking Critical Support Levels

A major cause for concern is Ethereum’s recent price action below critical technical levels. Ethereum has now dropped below the 200-day moving average (MA) for the first time since the 2021 bull run. This is a significant shift, as the 200-day MA is often seen as a key support level that helps determine the long-term trend of an asset. Breaking below this level suggests that Ethereum may be entering a new bearish phase.

In addition to the moving average breakdown, Ethereum has also fallen below the support of a decisive symmetrical triangle. This technical pattern had acted as a significant support zone for months, and now that Ethereum has breached it, the market is watching closely for further downside movement. A close below this triangle’s range could signal a larger downtrend, possibly pushing Ethereum’s price towards $1500.

Weak Technical Indicators

Several technical indicators are also flashing warning signs for Ethereum holders. The volume of Ethereum trading has remained subdued and continues to show bearish influence. Furthermore, the monthly Relative Strength Index (RSI) has dropped to levels similar to those seen during the 2022 market bottom, indicating that Ethereum is currently oversold and may face further price erosion if the trend continues.

The Ichimoku cloud and the Directional Movement Index (DMI) are both showing bearish signals, further confirming the growing possibility of a downward trend. These technical indicators suggest that Ethereum’s price action could continue to weaken in the coming weeks unless a significant catalyst pushes it higher.

Possible Reversal Scenarios

While the technical picture for Ethereum looks increasingly bearish, there are still some factors that could lead to a price reversal. If Ethereum’s RSI manages to rebound from its current levels, there could be a short-term recovery that could help the price regain momentum. However, with the current market sentiment and bearish indicators in place, the probability of such a rebound appears low.

For Ethereum to avoid a deeper decline, it will need to reclaim the $2000 level before the monthly close. If it fails to do so, the path to $1500 becomes more likely, and Ethereum could continue its descent toward this critical level. Traders and investors will be closely monitoring Ethereum’s price action in the coming weeks, as it faces a crucial test of its strength in a challenging market environment.

In conclusion, Ethereum’s price faces significant bearish pressure, with the potential for a drop to $1500 if it fails to regain key support levels. While the technicals are showing a bearish outlook, the possibility of a rebound remains if Ethereum can break back above $2000. The coming weeks will be crucial for determining Ethereum’s price trajectory as it faces increasing challenges in the cryptocurrency market.