Ethereum has faced one of its worst periods in recent history, as the price fell below $1,400, wiping out nearly seven years of growth. This sharp drop pushed it under its 2018 cycle peak of $1,450, raising deep concerns among traders and long-term investors. The fall, which exceeded 10% in a 24-hour period, unfolded early Wednesday during trading in Asia. Ethereum’s decline happened as part of a larger crypto market slump, triggered by new trade tariffs introduced by Donald Trump on April 9, which added pressure to global markets already on edge.
Ethereum, the second largest digital asset by market value, once touched a high of $4,878 in November 2021. Since then, it has lost over 70% of its value. The steepest part of this fall has come in the past few months, erasing years of price growth in a short span. Technical patterns show that Ethereum has dropped below its realized price — a level that shows what most long-term holders paid for their coins. This means many holders are now in loss territory, adding to the overall fear and frustration in the market.
Some analysts see this price level as a zone where large investors often start accumulating, expecting a future price increase. Ethereum has also dropped compared to Bitcoin. The ETH/BTC ratio has reached a five-year low of 0.018, which suggests that Ethereum is currently underperforming compared to Bitcoin by a wide margin. Market watchers have pointed out that Bitcoin has outperformed Ethereum on 85% of all trading days since Ethereum first launched in 2015.
Despite this drop, institutional investors have not reacted with the same panic. Spot Ethereum ETFs in the U.S. have mostly reported little to no outflows. This suggests that while smaller investors are selling in fear, larger investors may still be holding or waiting.
There are a few possible reasons to expect a recovery. Ethereum’s supply on exchanges has been steadily decreasing, which could reduce selling pressure in the future. Some traders believe this might create a supply crunch if demand picks up again. Indicators like the relative strength index also suggest Ethereum is deeply oversold, which could mean a price bounce is not far away.
However, the broader situation depends on larger market forces. Until there is more clarity on global trade policies and macroeconomic conditions, uncertainty is likely to remain. If central banks step in with new money policies or if real-world asset tokenization becomes more common, Ethereum could regain its position. But for now, it remains in a vulnerable state, having lost all price gains made since 2017.
This drop has split the crypto community. Some investors see this as a rare chance to buy a major asset at a deep discount. Others believe the damage will take a long time to repair and have exited the market. Whether Ethereum can recover from this crash will depend on its use in real-world applications and the return of investor confidence in the months to come.
