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Ethereum (ETH) has been in a downtrend since December, when it reached a high of $4,000. Fast forward to today, and ETH has now fallen below the critical $2,000 psychological level—a price point last seen in December 2023.

This decline has left most ETH holders sitting on unrealized losses. So, the big question remains: Where is the bottom for Ethereum?

Ethereum Drops Below $2,000 – Is a Crash to $1,600 Next? — Source: TradingView

Ethereum Dips Below “Realized Price” – A Bad Sign?

On March 10, Ethereum dropped below $2,000 and has since struggled to reclaim this key level. While Bitcoin and XRP have shown some signs of recovery, ETH remains weak. On March 11, ETH even hit a multi-year low of $1,750.

On-chain data from Glassnode reveals that Ethereum has now fallen below its “realized price” of $2,054 for the first time since February 2023. This means that, on average, most ETH holders bought at a higher price than the current market value, leading to widespread paper losses.

Additionally, Ethereum’s Market Value to Realized Value (MVRV) ratio has dropped to 0.93, meaning that, on average, ETH holders are sitting on 7% losses. Historically, when ETH trades below the realized price, further declines often follow.

Falling TVL and Transaction Fees – A Sign of Weakening Network Activity?

Another red flag for Ethereum is the decline in Total Value Locked (TVL) across its ecosystem. On March 12, TVL stood at $45.6 billion—a 41% drop from its $77 billion peak on December 17, 2024. This suggests that less capital is flowing into Ethereum’s DeFi space, indicating a drop in network activity.

At the same time, Ethereum’s transaction fees have plunged to $46.28 million, the lowest level since July 2020. This hints at declining user engagement, which could be a warning sign for future price action.

Is $1,600 the Ultimate Buy Zone?

According to Glassnode, the recent drop below $1,880 triggered a buying spree, with 600,000 to 700,000 ETH accumulating around the $1,900 level. This suggests that $1,900 could act as strong support—if ETH stabilizes there.

A well-known analyst, Ninja, believes that the $1,600–$1,900 zone is an attractive entry point for institutional investors. If ETH finds a bottom here, the next upside target could be $2,500.

What’s Next for ETH?

Right now, ETH is hovering around $1,900, but the broader crypto market will play a key role in what happens next.

Some analysts warn that Bitcoin hasn’t bottomed yet and could dip to $70,000 before stabilizing. If that happens, Ethereum hitting $1,600 wouldn’t be out of the question.

So, is now the perfect buying opportunity, or is more pain ahead?

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Roman B.

I have 6 years of writing experience on several leading websites dealing with cryptocurrencies and other investments. I have been in the Web3 sector for a similar amount of time and have collaborated on several projects from NFT to P2E. My previous experiences: Business2Community.com, TradingPlatforms.com, CryptoSvet.