Ethereum’s Price Plunge Echoes 2020 Crash Amid Institutional Shifts
12.03.2025 23:42
Ethereum, the world’s second-largest cryptocurrency, is facing a notable price decline that mirrors the March 2020 crash, despite major institutional moves such as SEC approval of Ethereum ETFs and its inclusion in the U.S. Digital Asset Stockpile. Crypto trader Ted Pillows warns of further drops into the $1,400–$1,600 range even though he maintains that a technical rebound to $10,000 within this cycle is plausible. Meanwhile, Bitcoin benefits from strong support levels around $70,000 as noted by Fidelity, and Ripple appears poised for potential clarity as its legal case nears resolution. Additionally, competitor Solana is mentioned as an alternative if Ethereum’s performance continues to lag, and the Ethereum Foundation’s pivot toward integrating core DeFi protocols like Aave may signal strategic restructuring toward long-term recovery. Overall, mixed signals from technical analysis and major institutional actions create a complex landscape for investors in these key cryptocurrencies.
In the short term, ETH is likely to continue its downward movement due to technical bearish signals and a pattern that mirrors the March 2020 crash. However, institutional developments like ETF approval and strategic measures, including restructuring and integration of DeFi protocols, lay the groundwork for a long-term rebound, with technical analysis hinting at a potential leap to $10,000 later in the cycle.
Bitcoin, benefiting from its status as a market leader, is expected to remain relatively resilient amid broader volatility. Strong institutional support and its safe-haven reputation may drive stability in the short term, even as spillover effects from Ethereum’s decline could introduce transient price fluctuations. Long term, sustained institutional backing should underpin its value.
XRP’s outlook is closely tied to the resolution of its ongoing legal case. A favorable outcome might reduce uncertainty and spur price growth, while an adverse decision could trigger further declines. In the short term, caution is likely to prevail until the case settles, with long-term performance hinging on the ultimate legal verdict.
Solana may capture investor interest as a competitive alternative if Ethereum continues to struggle. In the short term, a shift in investor sentiment toward platforms with different technological advantages could boost SOL, though its performance will also depend on broader market trends and sentiment. Long-term prospects remain moderate, hinging on sustained network utility and adoption.
Aave stands to benefit from its increased relevance in decentralized finance, especially as the Ethereum Foundation integrates core DeFi protocols into its operations. This strategic emphasis could enhance AAVE’s usage and valuation over time, even though overall market uncertainties might temper short-term gains. The medium to long-term outlook appears positive if integration efforts prove successful.
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