As of April 9, 2025, Ethereum (ETH), the world’s second-largest cryptocurrency by market capitalization, has reached a troubling milestone: its lowest price in two years, dipping below $1,500. This significant decline reflects more than just a short-term market fluctuation—it signals deep turbulence in the broader crypto landscape, driven by macroeconomic forces that have reignited risk-averse investor behavior.
From a peak of $4,100 in December 2024, Ethereum has shed over 64% of its value in just four months. The sudden selloff has raised urgent questions among retail and institutional investors alike: Why is Ethereum falling? What role do global trade policies play in crypto volatility? And could this downturn present a strategic buying opportunity?
Ethereum Price Hits Two-Year Low Amid Market Selloff
As of April 9, 2025, Ethereum trades at $1,476—its weakest level since March 2023. According to CoinMarketCap data, ETH has declined by more than 30% over the past 30 days and nearly 6% in the last 24 hours alone. This sharp correction has reduced Ethereum’s total market cap to approximately $178 billion.
The rapid drop has triggered over $400 million in liquidations across crypto derivatives markets within a single day, with long positions absorbing $341 million of those losses. Such large-scale deleveraging is a hallmark of panic-driven selling, especially among leveraged traders reacting to sudden shifts in market sentiment.
Ethereum vs. Bitcoin: A Widening Performance Gap
Historically, Ethereum has struggled to outperform Bitcoin during bear markets. Since its inception, ETH has outpaced BTC in price performance only about 15% of the time—typically during periods of strong decentralized application (dApp) adoption or DeFi booms.
However, in current risk-off conditions fueled by global macro uncertainty, Bitcoin’s “digital gold” narrative continues to attract safe-haven capital. In contrast, Ethereum’s value proposition—rooted in smart contract innovation, layer-2 scaling, and network utility—loses traction when speculative appetite wanes.
This divergence is starkly visible in the ETH/BTC trading pair. On April 9, the ratio plummeted to 0.018, the lowest level since December 2019. At this rate, it now takes 55 ETH to buy one BTC—a dramatic shift from the 2021 high of 0.08 (12.5 ETH per BTC). Analysts view this ratio as a key barometer of investor confidence in Ethereum relative to Bitcoin.
Tracy Jin, Chief Operating Officer at MEXC Global, warns:
"ETH is entering a concerning phase as its downward trend persists with little sign of recovery. On-chain metrics show clear fatigue—declining daily transactions, reduced gas usage, and shrinking DeFi volume suggest users and developers may be migrating to more scalable, cost-efficient blockchains. DEX volume has dropped nearly 50% from its late-2024 peak, while delays in the Pectra upgrade add further uncertainty to Ethereum's roadmap."
Why Is Ethereum Falling? The Macroeconomic Catalyst
The immediate catalyst behind Ethereum’s downturn lies in sweeping reciprocal tariffs introduced by the U.S. administration in early April 2025. These policies impose a baseline 10% tariff on all imports, escalating to 25% on strategic sectors like automobiles and technology components from major partners including China, Canada, and Mexico.
While these measures aim to protect domestic industries, they carry broad economic consequences: rising inflation expectations, disrupted supply chains, and tighter global liquidity. For risk assets like cryptocurrencies, such environments are particularly damaging.
Cryptocurrencies thrive in low-interest-rate, high-liquidity settings where investors seek yield beyond traditional markets. When macro fears escalate—as they have with renewed trade wars—capital flows into safe havens like gold (up 19% year-to-date to $3,115) and the U.S. dollar, leaving volatile assets like ETH vulnerable.
Dr. Kirill Kretov from CoinPanel notes:
"There’s no single clear trigger for Ethereum’s near-40% drop since November—but the persistence of the decline suggests structural pressure rather than isolated events. Earlier this year, the ByBit hack led to $1.3 billion worth of ETH being laundered into BTC, causing a sharp but temporary 25% drop. This time, the fall from $4,100 is deeper, more sustained, and lacks a definitive catalyst. It feels like systemic de-risking."
"Falling #Ethereum Could Be the Canary In the Coal Mine—Ether may be on the way to revisiting its next round-number support level at $1,000, with implications for risk assets."
— Mike McGlone (@mikemcglone11), April 6, 2025
Technical Analysis: How Low Can Ethereum Go?
Ethereum’s current price action mirrors historical bear market patterns observed in 2018 and 2022. Cointelegraph’s fractal analysis identifies recurring cycles characterized by:
- Bearish divergence: Price makes higher highs while momentum indicators like RSI fail to confirm.
- Fibonacci retracements: Post-rally corrections often find support between the 0.618 and 0.786 levels.
- Oversold conditions: RSI dipping below 30 typically precedes reversals.
Applying this framework today, analysts project Ethereum’s next potential floor between $990 and $1,240—aligning with the critical Fibonacci zone. If history repeats, $1,000 could mark a final capitulation point before a sustained recovery.
On-chain data supports this view. Glassnode’s Net Unrealized Profit/Loss (NUPL) metric has entered “capitulation” territory, meaning most ETH holders are currently underwater. Similar NUPL readings preceded major bottoms in March 2020 ($90 low) and June 2022 ($880 low).
Additionally, CoinGlass reports that open interest in Ethereum futures has dropped to $17 billion—the lowest since mid-March—down from nearly $24 billion a month ago. This decline reflects waning trader confidence and reduced leverage in the derivatives market.
FAQ: Understanding Ethereum’s Price Crash
Will Ethereum rise again?
Yes—historically, Ethereum has always recovered after major corrections. Current indicators like NUPL in capitulation and RSI nearing oversold levels (currently at 32) suggest a rebound could be forming. If ETH stabilizes above $1,000 and closes above $1,500 by week’s end, a rally toward $2,121 (March 2023 highs) becomes increasingly plausible.
Is Ethereum a good buy right now?
For long-term investors using dollar-cost averaging (DCA), current prices between $1,400 and $1,000 may represent a strategic entry zone. Over 50% of ETH’s circulating supply was acquired between $1,000 and $2,600, creating a strong historical demand floor. However, traders should remain cautious—RSI hasn’t yet hit oversold levels (<30), and a break below $1,500 could extend losses toward $990.
Why is ETH falling?
Ethereum’s decline stems from a confluence of macroeconomic pressures and internal network challenges:
- Trump’s 2025 tariffs have triggered a global risk-off environment.
- Reduced on-chain activity signals weakening ecosystem momentum.
- Delays in key upgrades like Pectra undermine developer confidence.
- Capital rotation into safer assets like gold and USD has drained liquidity from crypto markets.
How much will 1 ETH cost in 2030?
Long-term forecasts vary widely:
- Bull case ($20,000+): Assumes resurgence in DeFi, NFTs, and institutional adoption.
- Base case ($10,000): Balanced outlook factoring gradual innovation and macro normalization.
- Bear case ($3,000–$5,000): Accounts for prolonged regulatory hurdles or extended tariff-driven recessions.
Monitoring the ETH/BTC ratio—a current low of 0.018—will be crucial for gauging long-term momentum shifts.
Could Ethereum drop below $1,000?
While possible in extreme scenarios (e.g., global recession or prolonged regulatory crackdowns), most analysts view sub-$1,000 levels as unlikely unless systemic collapse occurs. The $990–$1,240 zone is considered the most probable bottom based on technical and on-chain evidence.
What would trigger an Ethereum recovery?
Key catalysts include:
- Stabilization of global trade policies.
- Successful execution of the Pectra upgrade improving scalability.
- Renewed institutional inflows into crypto ETFs.
- A shift back to risk-on investor sentiment driven by central bank rate cuts.