Ethereum Price Today: Could ETH Plunge Below $1,000 Amid Market Turmoil?

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The crypto market has seen a bloodbath throughout February, with Bitcoin plunging to its 2021 low and trading at $86K while the second largest altcoin Ethereum is also facing intense turbulence. ETH dropped below $2,500 after a massive $1.5 billion hack on Bybit, allegedly led by North Korea’s Lazarus group, triggering a 25% price crash. Now, analysts warn Benjamin Cowen warns that ETH could sink even lower, possibly below $1,000, before any meaningful recovery. 

Bearish Signals Stack Up

ETH’s recent price movement has been largely bearish, with its breakdown below crucial support indicating that further downside could be imminent. The provided chart suggests that ETH could mirror past capitulation events from April and August, potentially bottoming out below $1,000. If history repeats itself, such a steep decline might be followed by a strong rebound, but only if macroeconomic conditions align favorably.

Not to forget that the Federal Reserve’s stance on quantitative easing (QE) is a critical factor influencing ETH’s outlook. Currently, no signs indicate that the Fed is ready to inject liquidity into markets, which could worsen the downward trend. If this tight monetary policy continues, Ethereum could fall below $1,500 and can go toward $1,200 or even sub-$1,000 before stabilizing.

Can Ethereum Recover?

A shift in the Fed’s monetary policy could be the catalyst ETH needs for a reversal. Historically, Ethereum has benefited from increased liquidity following QE events, often leading to an ETH/BTC ratio surge. If the Fed reintroduces stimulus measures by March 2025, Ethereum could rebound significantly. 

Crypto analyst, TraderPA believes Ethereum is oversold and is currently trading within its largest historical order block. Despite market bearishness, he remains confident in the charts, suggesting a potential rebound.

For now, Ethereum remains under heavy pressure, with analysts cautioning that the worst might not be over. However, should ETH hold above $2,000 amid improving market conditions, a recovery to the $3,500–$4,000 range remains on the table.