Key Points
Ethereum’s price has taken a severe hit, making it one of the worst-performing blue-chip cryptocurrencies in February.
Ethereum (ETH) plummeted to a low of $2,075, its lowest since January 2024 and about 50% below its highest level in November 2023.
This ongoing decline has shattered the second-largest cryptocurrency’s six-year track record.
It’s the first time since 2018 that Ethereum has experienced a February decline, and it’s the worst on record.
Ethereum’s plunge has been more drastic than its largest competitors.
Bitcoin (BTC) has dipped by 25% from its highest level this year, while Ripple (XRP) is down about 40% in the same period.
Part of Ethereum’s decline is due to continuous outflows in the exchange-traded fund.
All spot Ethereum ETFs have witnessed asset losses for six consecutive days, reducing cumulative assets in these funds to $2.86 billion.
Likewise, spot Bitcoin ETFs have lost over $4 billion worth of assets.
Ethereum Losing Market Share
Ethereum’s struggles are also due to its loss of market share to other layer-1 and layer-2 projects.
Notable competitors include layer-1 networks like Solana (SOL) and BNB Smart Chain, and layer-2 networks such as Base and Arbitrum.
The broader crypto market fear has also played a role in Ethereum’s downturn, with the Fear & Greed Index dropping to 33.
ETH price has continued to crash, as predicted in earlier analysis, citing the bearish flag chart pattern.
A flag pattern consists of a long vertical move followed by consolidation, forming a rising wedge pattern, a known bearish continuation signal.
Worse still, Ethereum has formed a death cross, which happens when the 200-day moving average crosses below the 50-day moving average.
This is viewed as one of the most bearish technical patterns in the market.
Ethereum has also lost the key support level at $2,150, which previously marked the lowest swing in August and September 2023.
This price acted as the neckline of the triple-top pattern at $4,000.
Moreover, the Average Directional Index has risen to 40, indicating that downward momentum is gaining strength.
Given that the distance between the triple-top pattern and the neckline at $2,150 is 47%, applying the same measure downward suggests that Ethereum’s price could crash to $1,095.