Ethereum's price has fallen sharply below $2,100, reaching its lowest level since December 2023 amid broader market turbulence. The second-largest cryptocurrency is currently trading at $2,063, marking a 15% decline in the past 24 hours.
The dramatic drop comes after a brief rally sparked by Donald Trump's March 2 announcement of a U.S. Crypto Strategic Reserve. While that news temporarily pushed ETH above $2,500, the gains quickly evaporated following Trump's confirmation of new tariffs on China, Canada, and Mexico.
Market data shows declining momentum across multiple indicators. Open interest in Ethereum futures has decreased by 10% in the last day, according to Coinglass. The total value locked in decentralized finance (DeFi) protocols has hit yearly lows, falling from $71 billion in January to $48.1 billion as of March 4.
Large holders appear to be reducing their positions. Analytics platform Lookonchain reported that a wallet linked to Genesis transferred 30,000 ETH (approximately $68 million) to FalconX and Galaxy Digital on March 4.
Technical indicators paint a bearish picture, with ETH trading well below key moving averages. The Relative Strength Index (RSI) sits at 34, approaching oversold territory and reflecting weakened buying pressure.
Looking ahead, the Ethereum Pectra upgrade scheduled for April could provide positive momentum by improving network scalability and staking capabilities. Market participants are also awaiting the first White House Crypto Summit on March 7, which may offer clarity on regulatory direction and details about the proposed crypto strategic reserve.
The cryptocurrency market broadly felt the impact of the tariff news, with Bitcoin also declining 10% and over $1 billion in crypto futures positions being liquidated within 24 hours.