The price of Ethereum (ETH) dropped below $1,600 on Wednesday. This decline occurred as significant economic pressures increased and Ethereum’s blockchain competitors are growing. The ETH/BTC ratio has also decreased, weakening Ethereum against Bitcoin. Meanwhile, technical indicators suggest a potential further price drop to multi-year lows. Donald Trump’s legal action to cancel Know Your Customer (KYC) requirements for DeFi platforms has led to capital outflows from Ethereum-based protocols. The emergence of blockchains like Solana (SOL), Avalanche (AVAX), and Base (BASE) has reduced Ethereum’s share of Total Value Locked (TVL) to less than 55%, down from over 70% at its peak. With the successful launch of the Dencun update in March 2025, Ethereum’s on-chain activity and active addresses have decreased. On the other hand, layer-two solutions like Arbitrum (ARB) and Optimism (OP) have attracted a significant portion of transactions. According to DeFiLlama data, over $12 billion has exited Ethereum DeFi protocols since the beginning of March. Additionally, the ETH/BTC ratio has now dropped below the psychological level of 0.02. Currently, Ethereum is priced around $1,570, 31% lower than March’s price ceiling. With the $1,597 support broken, a downward target at $1,100 has become active. However, the Relative Strength Index (RSI) at 42.45 may indicate oversold conditions and the formation of temporary support at $1,385. To return to an upward trend, surpassing the $1,730 resistance is essential.
