The price of Ethereum does not budge from 1,800 USD

It has now been two weeks that the price of Ethereum (ETH) fluctuates around 1,800 USD.

While on one hand this may not seem like good news, especially for the holders, on the other hand it should still be interpreted as a good sign.

In fact, this lateralization has at least the merit of having interrupted the descending phase.

Summary

• The descending phase of Ethereum’s price: 1,800 USD support or resistance?
• The first problem of ETH
• The competition of Ethereum
• 1,500 USD was the last bottom for the price of Ethereum (ETH)

The descending phase of Ethereum’s price: 1,800 USD support or resistance?

With the electoral victory of Donald Trump, in November of last year, the price of Ethereum had risen from 2,400 USD to 4,000 USD.

However, that was just a mini-bubble, and it burst when Trump took office at the White House in the second half of January.

At that point, the price of ETH, like that of the other crypto, fell to 2,600 USD at the beginning of February, but the decline did not stop there.

In fact, at the end of February, a real anomaly began, still ongoing, which brought the price of Ethereum well below the starting level of the mini-bubble in November, set precisely at 2,400 USD.

In mid-March, it had already fallen below 1,900 USD, and at the beginning of April, it even dropped below 1,500 USD. However, this second drop was almost entirely recovered in the second half of April, about two weeks ago, with the return above 1,800 USD.

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The first problem of ETH

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Causing this unusual drop in the price of Ethereum were two factors in particular.

The first is the excessive overvaluation recorded between 2022 and 2024.

In fact, in September 2022 Ethereum transitioned from Proof-of-Work to Proof-of-Stake, and this allowed it not to fall below the June lows in the second half of the year.

Taking as a reference the price of ETH in Bitcoin, in June 2022 it was 0.054 BTC, while in September it had risen to 0.080. It closed 2022 at 0.075 BTC, but that overvaluation was paid for during the following year when it fell to 0.050 BTC, which is less than the minimum of 2022.

During 2024, something similar happened, particularly with the announcement of the approval of spot ETH ETFs by the SEC.

In the meantime, the price of Ethereum in Bitcoin had dropped to 0.046 BTC, since generally only during bull runs does ETH perform better than BTC on the crypto markets, and that news brought it back in a very short time to 0.055 BTC.

However, when the spot Ethereum ETFs actually landed on traditional exchanges, there were strong liquidations of ETH, and thus its price in Bitcoin ended up falling to 0.034 BTC.

The competition of Ethereum

Currently, however, this price has plummeted to 0.019 BTC, which is much lower than the levels at the end of October 2024.

Note that the relative peak of the last few months from this point of view was reached right at the beginning of November above 0.040 BTC, which is much higher than the current levels.

This latest decline, therefore, is not only due to the deflation of the mini-bubble caused by the so-called Trump trade at the end of 2024, also because that bubble had already completely deflated at the beginning of February.

The second major problem of Ethereum is the competition from Solana, especially regarding memecoins.

In the past, it was mainly on Ethereum that new tokens were launched, creating new use cases for ETH as a means of payment for fees. However, for some months now, the vast majority of new tokens have been created on Solana, creating new use cases for SOL but taking them away from ETH.

In particular, a couple of days before his inauguration at the White House, Donald Trump launched his memecoin, right on Solana. And so the mass shift of the memecoin market from Ethereum to Solana has taken away many use cases from ETH as a means of payment for transaction fees of the various memecoin.

1,500 USD was the last bottom for the price of Ethereum (ETH)

However, the price movements of Ethereum in recent weeks reveal that the relative bottom of the last few months might have been made.

In particular, the chart clearly shows an almost continuous decline from 4,000 USD in mid-December 2024 to 1,500 USD at the beginning of April 2025. In April, it also shows a brief period of lateralization around this latter figure, followed by a rebound occurring between the 22nd and 23rd of April.

At that point, about two weeks ago, a new period of lateralization began, longer and still ongoing, at a higher price level, specifically the 1,800 USD.

Observing the chart of the last few months, it really seems that the descending phase has ended, and that the current lateralization should be considered as a new phase that has just begun.

However, this does not allow for making predictions. In fact, not only is it not certain that the current lateralization can last much longer, but it is also not possible to completely rule out that sooner or later a new bear phase may be triggered.

However, several analysts argue that the late April rebound in the price of Ethereum could eventually be followed by another rebound, also because the drop to 1,500 USD seems excessive, given that it is in line with the bottom of 2023.

It might still take a little while before the situation unlocks.

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