On March 4th, Ethereum fell below its year-end low since November 2023, dropping to $1,996. This sharp decline directly wiped out $100 million from its derivatives market, with the total open interest across the network decreasing by approximately 10.31% during the same period. Such a significant correction has led to increased pessimism among market investors regarding Ethereum’s future. As the bull market enters its later stages, is there still hope for Ethereum to rebound?
Gabriel Halm, a research analyst at IntoTheBlock, believes that although Ethereum has underperformed in this bull market, its upcoming Pectra upgrade could potentially alleviate selling pressure on ETH, thereby driving up its trading price.
Data shows that over the 78-day period from December 1, 2024, to March 4, 2025, Ethereum’s price nearly halved, and its market capitalization evaporated by over $250 billion. Such a massive drop is typically seen in smaller altcoins, making it quite rare for a leading project like Ethereum to experience such a decline. This prolonged downward trend has significantly weakened investor confidence, leading to a rapid decline in its market position and increasingly volatile price movements.
According to data from the IntoTheBlock platform, only 26% of ETH addresses (holding a total of 36.92 million ETH) are currently in profit, while a staggering 70% of addresses are at a loss, with only 4.46% breaking even. These figures reflect the severe recent decline in Ethereum, which has dealt a heavy blow to investors and left the majority of holders facing financial pressure.
From a technical perspective, Ethereum’s weekly closing price has fallen below the upward trend that had persisted for 980 days since June 2022, suggesting a potential long-term trend reversal in the market. Additionally, the Relative Strength Index (RSI) has dropped to multi-year lows, further reinforcing the bearish market structure. However, the extremely low RSI may indicate that selling pressure is weakening, potentially paving the way for a short-term rebound in Ethereum’s price.
