February has been brutal for the cryptocurrency market, with Bitcoin plunging to its 2021 lows at $86K and Ethereum experiencing significant selling pressure. The second-largest cryptocurrency dropped below $2,500 following a massive $1.5 billion hack on Bybit, allegedly orchestrated by North Korea’s Lazarus Group. This incident triggered a 25% crash in Ethereum’s price, and analysts, including Benjamin Cowen, warn that ETH could tumble even further—potentially below $1,000—before any meaningful recovery.
still relevant https://t.co/VvzjkkltnZ
— Benjamin Cowen (@intocryptoverse) February 26, 2025
Ethereum’s Bearish Trend Intensifies
Ethereum’s price continues to trend downward, with its breach of key support levels indicating a deeper correction ahead. Analysts highlight previous capitulation events in April and August, suggesting ETH could follow a similar pattern and find a bottom below $1,000. While history suggests sharp declines often precede strong rebounds, the broader market environment remains a crucial factor in determining Ethereum’s fate.
A significant influence on Ethereum’s price trajectory is the Federal Reserve’s monetary policy stance. At present, there is no indication that the Fed will shift towards quantitative easing (QE), which could further exacerbate ETH’s decline. Should the Fed maintain tight liquidity conditions, Ethereum could see further drops, with analysts eyeing potential support at $1,500, $1,200, or even below the $1,000 mark before any stabilization occurs.
Is Ethereum Oversold? Potential for a Rebound
Despite the ongoing bearish sentiment, some analysts argue that Ethereum may be oversold. Crypto expert TraderPA believes ETH is currently trading within its largest historical order block, which could signal a potential bounce. Historically, Ethereum has seen strong recoveries following QE-driven liquidity injections, often outperforming Bitcoin during bullish cycles.
Ethereum is oversold.
— TraderPA (@Trader1PA) February 27, 2025
It's trading in its biggest orderblock of history and you're being bearish.
I'm trust the charts. pic.twitter.com/6QaXgWYvNc
If the Federal Reserve shifts its policy and introduces stimulus measures by March 2025, Ethereum could stage a significant comeback. Should ETH maintain support above $2,000 as market conditions improve, a recovery toward the $3,500–$4,000 range remains possible.
Also Read: BlackRock Moves $204M in Bitcoin & Ethereum to Coinbase
For now, Ethereum remains under pressure, with market watchers warning that the worst may not be over. Traders should brace for potential volatility as ETH navigates this challenging period.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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