Ethereum (ETH) Price Drops Under $2,000 — $1,600 Could Be Next

Key Takeaways

• Ethereum (ETH) has increased since March 11
• The upward movement is a corrective structure.
• Will Ethereum’s price break down once again?
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Ethereum’s price movement gave some much-needed optimism with a bounce on March 11. The positive momentum led to a bullish candlestick on March 19, when the ETH price outperformed Bitcoin (BTC).

However, ETH has dropped below $2,000 since while Bitcoin held firm, reinforcing a long-term bearish trend between the two.

Ethereum’s failure to hold $2,000 risks taking the price to yet another yearly low. Let’s analyze the price action and see what will happen.

Ethereum Breaks Down

Ethereum’s price has fallen over 50% since its cycle high of $4,106 in December 2024, culminating with a low of $1,759 last week.

In March 2025, Ethereum broke down from a 1,000-day ascending support trend line and closed below the $2,250 horizontal area.

While Ethereum bounced after falling to $1,759, briefly crossing $2,000, it has yet to retest the $2,250 horizontal area.

Technical indicators align with the price action, giving a bearish outlook. The Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) are falling.

The RSI is below 50 while the MACD is negative, suggesting a bearish trend.  If the downward movement continues, the next closest support area will be $1,600.

ETH Drop Incoming?

As CCN analyst Victor predicted last week, Ethereum broke out from its resistance trend line, reaching a high of $2,090.

While the short-term breakout materialized, the wave count suggests it is corrective. The most likely count suggests the movement is an A-B-C structure (green), characterized by the triangle in wave B.

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Since Elliott Wave theory states that symmetrical triangles cannot be wave two in an impulsive movement, the only alternative is a corrective structure.

Waves A and C having the same length supports this possibility. The 1.61 external Fibonacci retracement of the structure gives a target of $1,550, aligning with the long-term horizontal support area.

On the other hand, increasing above the wave C high of $2,070 will invalidate this count, leading to new Ethereum price highs. This currently seems unlikely.

Bearish Ethereum Trend

Ethereum confirmed its bearish trend with a breakdown from long-term diagonal and horizontal support levels.

While the price bounced on March 11, the increase is a corrective structure and could have ended on March 19.

If this is the case, Ethereum will continue its downward movement toward the next closest support at $1,600.