Ethereum’s price has been under significant pressure recently, breaking crucial support levels and facing a strong wave of bearish sentiment. While Bitcoin continues to soar, Ethereum (ETH) remains stuck in a persistent downtrend, raising questions about when ETH might recover and what investors can expect moving forward.

Ethereum’s Price Struggles and Key Support Levels Breakdown

Ethereum has experienced a notable decline, losing two major support levels in recent weeks—$3,200 and $2,200. In the past three weeks, ETH has dropped more than 33%, trading near $1,891 as of early Friday, March 14, 2025. This downturn has been particularly concerning for Ethereum holders, as the price shows little sign of immediate recovery.

The broader financial market is also under pressure. Stock indices like the S&P 500 have been sliding, primarily due to the ongoing uncertainty surrounding U.S. tariff wars. This global market weakness has led investors to shift towards safer assets, including gold and stablecoins, putting additional downward pressure on riskier assets like Ethereum.

Investor Sentiment and Growing Fear Among Holders

Investor fear is becoming increasingly evident as Ethereum struggles. According to on-chain data from Glassnode, long-term Ethereum holders are showing signs of concern. In addition, U.S. spot Ether ETFs have been experiencing consistent cash outflows, with net withdrawals reaching $73 million on Thursday alone. This marks the third consecutive week of outflows, further dampening the sentiment surrounding Ethereum.

The growing fear among investors is compounded by Ethereum’s inability to break past the $4,000 resistance level over the past year. Despite Ethereum’s dominance in decentralized finance (DeFi), its price has failed to reflect the platform’s ongoing development and innovation.

Ethereum’s Oversold Condition and Potential Rebound

Despite the bearish outlook, there is a potential silver lining. Ethereum’s price appears to be heavily oversold compared to Bitcoin, which could pave the way for a possible rebound. From a technical standpoint, if Ethereum can hold its current support level, it may be able to avoid further declines toward $1,500.

Additionally, the ETH/BTC pair is testing a critical support level around 0.023. If this level holds, it could help restore bullish sentiment for Ethereum in the near future. However, for Ethereum to regain momentum and reverse the current trend, it must decisively break through resistance and stabilize above key support levels.

Ethereum’s Dominance in DeFi and Development Progress

Despite the current price struggles, Ethereum continues to maintain its dominance in decentralized finance (DeFi). As of now, Ethereum holds a total value locked (TVL) of approximately $45 billion, with its stablecoin market cap exceeding $123 billion. This ongoing dominance is a positive indicator for Ethereum’s long-term potential, even as its price struggles in the short term.

In addition, Ethereum developers are not sitting idle. The Ethereum Foundation is actively working on the upcoming Pectra upgrade, which is expected to improve the network’s scalability and performance. Tim Beiko, a core developer at Ethereum Foundation, recently declared that the third testnet, Hoodi, is scheduled to introduced by mid-April 2025. This upgrade is designed to finalize preparations for the network’s future enhancements, aiming to keep Ethereum competitive in the evolving blockchain landscape.

Conclusion: Can Ethereum Bounce Back?

Ethereum’s price struggles are significant, with key support levels broken and investor sentiment weakening. However, the network’s continued dominance in DeFi, alongside the upcoming Pectra upgrade, suggests that Ethereum is far from being written off. If Ethereum can hold crucial support levels and manage a rebound from its oversold condition, a recovery may be on the horizon. For now, traders and investors should monitor key price levels and market conditions closely to gauge whether Ethereum’s current slump is merely a temporary setback or a sign of deeper issues to come.

As always, the market remains highly volatile, and Ethereum’s future price movement will depend on both broader market conditions and the network’s ongoing developments.