19 March 2025
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Ethereum Price Drops Over 40% Amid 44% Decline in DEX Activity
Ethereum Price Analysis
- ETH price has dropped over 40% since the start of the year, currently consolidating around $1,950.
- Decentralized exchange (DEX) activity on Ethereum fell by 44% weekly.
- Analyst Mags characterized the ETH price chart as "one of the worst," noting three failed attempts to break above $4,000.
- Recent price movements indicate a fall below key support levels, including the mid-range and upward trendline.
Price Scenarios
- Bearish Scenario: Continued decline due to weak support, potentially reaching $1,060.
- Bullish Scenario: Recovery to $2,500 and another attempt at breaking $4,000.
The bearish scenario appears more probable based on current technical indicators.
DEX Activity Trends
- Ethereum DEX activity decreased by 44%, impacting Layer-2 solutions such as Base, Arbitrum, and Polygon.
- Solana’s DEX activity fell by 35%, SUI by 17%, while BNB Chain saw a 38% increase in trading volume.
Whale Accumulation
- Large holders (whales) between 10,000 and 100,000 ETH increased their holdings by over 12% in early 2025.
- Smaller holders reduced their balances, indicating differing confidence levels among investor segments.
Overall, despite market fluctuations, whale accumulation suggests increasing confidence among larger investors.