Ethereum prices crashed more than 6% on Friday, continuing the downtrend, peaking at $2,105 on March 24th.
Ethereum (ETH) has dropped to its lowest level of $1,880 since March 18th. It erased most of the profits made in the past two weeks.
After the US released hot inflation data, the ether crashed, pointing out higher interest rates longer. The core consumer spending index rose from 2.7% in January to 2.8% in February. The headline PCE rose to 2.5%, higher than the 2.0% Federal Reserve target.
These numbers mean that inflation will remain sticky for some time, especially after Donald Trump implemented tariffs on his release day. Higher inflation means the Federal Reserve could hold higher interest rates for longer.
This explains why other dangerous assets were removed after the PCE report. The S&P 500 index fell by 1.50%, while the Nasdaq 100 and Dow Jones crashed by 2% and 1.2%, respectively. Most cryptocurrencies, including Bitcoin (BTC) and Cardano (ADA), have also crashed.
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Ethereum prices crashed as indicators of fear and greed fell to 25 ahead of Trump’s tariffs. Economists warn that these tariffs could lead to a recession, erasing some of the growth that took place under Joe Biden.
What’s more, Wall Street investors remain on the sidelines as Ethereum challenges remain. Sosovalue data shows that Spot Ethereum ETFs only inflows once in March. They added a net worth of $14.8 million on March 4th, and have since cut their assets, bringing their accumulated assets to just $2.4 billion. All Ethereum ETFs have only $6.866 billion.
Ethereum ETF inflows and outflows | Source: SosoValue
Furthermore, Ethereum continues to lose market share in major industries, including decentralized finance, inappropriate tokens and decentralized exchanges. Lost shares of Layer-1 chains such as Sonic and Berachain, and Layer-2 networks such as Base and Arbitrum.
Ethereum price technology analysis
ETH Price Chart | Source: crypto.news
ETH prices also crashed due to technical reasons. The weekly chart shows that it formed a triple top pattern and a $2,130 neckline at $4,000, the lowest level last August.
Ethereum fell under this neckline earlier this month and retested it this month. The break-and-retest pattern is a popular continuation sign. It also forms a bearish flag pattern that includes vertical lines and some integrations.
Therefore, there is a risk that the coin will collide with its lowest point, $1,537 on October 9th. A resistance level of $2,131 will invalidate the bearish view.
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