Ethereum’s 20% Drop Suggests End of Three-Year Bull Run
Posted by: Omkar Godbole | Edited by: Parikshit Mishra Updated: March 10, 2025 15:04 UTC Published: March 10, 2025 05:55 UTC
The price of ether (ETH), the native token of the Ethereum network, fell nearly 20% in the seven days to March 9, recording its biggest weekly decline since November 2022, according to TradingView data.
The sell-off broke a bullish trend line that began after the low recorded after the collapse of algorithmic stablecoin Terra UST in June 2022, which resulted in billions of dollars in losses for investors.
This strong breakout suggests that Ethereum’s nearly three-year bull run is likely coming to an end, which could lead to more significant losses, possibly to the support level indicated by the September-October 2023 lows, around $1,500.
Trend lines serve to visualize the direction in which traders are allocating their funds and where price movements are expected. An upward or bullish trend line reflects levels where demand is expected to be sufficient to prevent further price declines.
When a significant bullish trendline is broken, as happened with ETH, it signals a decrease in demand or that sellers are outnumbering buyers, which could indicate a potential bearish turn in the market trend. The breakout often prompts other traders to sell, resulting in additional losses.
Ethereum’s nearly 20% decline has broken double support – the trend line and the $2,100 area, demonstrating sellers’ exhaustion since August.
The next support is expected to be at $1,500, while last week’s high of $2,523 represents a level that bulls may try to break through.
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