Ethereum has fallen sharply as part of a broad selloff in the cryptocurrency market, slipping 17% over the past week, according to Invezz. The token has breached the $1,700 level, with near-term downside risks eyed toward $1,500 as bears extend pressure. The weekly chart remains decisively bearish, with a liquidity magnet concentrated near $1,380, underscoring the potential for further weakness even after any brief rallies.
At current levels, the path lower could test the April 2025 low if selling momentum persists, though the immediate trajectory remains sensitive to macro and liquidity dynamics that have dominated crypto markets this week.
Key takeaways
- Price move: Ethereum down 17% in the past week, trading around $1,682 as of the latest reading, with a break below $1,700 opening the door to lower levels.
- Catalyst: A broad selloff in the cryptocurrency market has amplified downside pressure on Ethereum and other major tokens.
- Technical implications: The weekly chart remains bearishly biased, with a liquidity magnet near $1,380 suggesting additional support could be tested if the decline continues.
- Longer-term view: Tom Lee, chairman of Bitmine, maintains an ultra-bullish long-term outlook for Ethereum, projecting a price target of $250,000, arguing the asset is undervalued amid a shift toward autonomous AI-driven activity.
What drove the move
According to Invezz, Ethereum’s latest decline mirrors a broad-based selloff across the cryptocurrency market. The sudden turn lower follows weeks of consolidation and highlights the market’s sensitivity to liquidity conditions and risk sentiment. While Ethereum has managed to sustain activity on its smart contract platform, the near-term price action has been dictated by downbeat flows rather than firm fundamental catalysts.
Technically, the asset has lost the key $1,700 support, which has sharpened the focus on the $1,500 zone as the next psychological and technical milestone. The weekly chart’s structure reinforces the bearish tone, with the market’s attention turning to whether a sustained breach of pivotal levels can be avoided or whether the downside will extend toward the deeper supports observed in prior cycles.
Market reaction
Ethereum’s price action has shifted below a sequence of near-term supports, with the market now trading around $1,682. The breakdown below the February-lows area reinforces the threat of a test of the next layer of supports near $1,538 and $1,380, the latter representing a level last seen in April 2025, according to the analysis cited by Invezz.
Momentum indicators corroborate the bearish bias. The RSI sits in oversold territory, while the MACD remains below its signal line, signaling that downside pressure could persist even if periodic bounces occur. A constructive recovery would require a break above the $1,835 resistance area, followed by a move back toward the $2,070 region, the analysis suggests.
Investors are also weighing the ongoing macro backdrop and liquidity conditions in crypto markets, which have a material impact on risk assets, including Ethereum. The current setup implies that any stabilization would likely hinge on broader market cues rather than company- or protocol-specific breakthroughs.
What analysts are saying
Despite the near-term pressure, Ethereum’s long-term narrative remains contested among market participants. Bitmine’s chairman, Tom Lee, remains optimistic about Ethereum’s future trajectory. Lee has reiterated a bullish long-term outlook that envisions a substantial price expansion, with a target as high as $250,000 for Ethereum. He argues that markets have underestimated Ethereum, and that the current pessimism may present a lucrative opportunity for long-term buyers.
Lee’s case rests on a thesis that the next major phase of global economic activity will be driven by autonomous AI agents operating in real time. In his view, Ethereum is well-positioned to serve as the base layer for this next wave of machine-driven activity due to its established smart contract infrastructure and sizeable developer ecosystem. He also highlighted structural changes within the Ethereum ecosystem, noting that the Ethereum Foundation has reduced its holdings to a small fraction of the total supply—a dynamic he says could support a more flexible supply-demand balance over time.
Invezz notes that Bitmine, as the leading corporate holder of Ethereum, faces substantial unrealized losses in the current bear market. Nonetheless, Lee’s emphasis remains on the potential for Ethereum to become a fundamental infrastructure asset in a future AI-enabled economy, which could reframe price expectations over the long run.
Bigger picture
From a broader perspective, Ethereum’s current configuration—its smart contract ecosystem, ongoing development, and the shifting balance of supply among holders—continues to intersect with macro trends in rates, inflation, and technology cycles. The market’s immediate focus remains on near-term support levels and whether a floor can hold around the $1,630 area. Should that level prove durable, Ethereum could attempt a measured rebound toward the $1,835 area, but a decisive break above the $2,070 resistance would be required to shift the intermediate-term outlook back to neutral or bullish terrain.
Investors will be watching for confirmation signals around key technical levels, as well as any developments within the Ethereum ecosystem that could realign incentives for developers and users. The broader market backdrop—rates policy direction, liquidity conditions, and geopolitical risk—will continue to influence risk sentiment and the timing of any durable rebound in Ethereum.
What to watch next: Monitor whether Ethereum defends the minor support around $1,630 and how price action evolves around the $1,835 resistance and the $2,070 hurdle. Upcoming macro data releases, central bank commentary, and any Ethereum-specific developments or regulatory news could offer fresh catalysts in the coming weeks.
