Ethereum Price Set to Drop to $1,500 Next – Buy the Dip?

ETH traders are in despair as they watch the Ethereum price continue to lose ground versus its main rivals like Bitcoin.

Despite a surprise softening of US consumer price inflation that offers the Fed room to ease rates later in 2025, per data released on Wednesday, has failed to considerably raise the Ethereum price, which continues to languish well beneath $2,000.

That’s despite a stable recovery from lows of other major cryptos like Bitcoin, XRP and BNB. Indeed, the ETH/BTC ratio just hit its lowest level in nearly five years beneath 0.023.

Ethereum’s accelerating downwards spiral versus Bitcoin is of main concern to its traders. At this rate, a retest of its 2019 lows around 0.016 may come imminently.

And with the Ethereum price chart sending strong bearish indicators, more downside may be very probably.

Here’s Where the Ethereum Price is Headed Next

The Ethereum price has seen a break beneath, then rejection of the key long-term $2,140 resistance level in recent days.

That sends a powerful bearish sign that the 2024- early 2024 $2,000-$4,000 range is a thing of the past, and that Ethereum is likely to find a new range at lower levels.

Bears will be eyeing a retest of the next major support zone around $1,500.

A retest of these levels seems very likely in the context of an uncertain macro backdrop.

Yes, softening US inflation gives the Fed more room to signal a slightly more dovish stance in 2025.

But the markets’ major concern will remain rising US recession risk as D.O.G.E austerity and Trump trade war uncertainty start to take their toll on economic growth.

Mohamed El-Erian, a Bloomberg Opinion columnist, says the possibility of a US recession is now at 25%-30%.
El-Erian had the possibility of a recession at 10% at the start of the year https://t.co/uM8FjGPhCZ pic.twitter.com/aT7P39i72f

— Bloomberg TV (@BloombergTV) March 12, 2025

If recession indicators keep piling up in the coming weeks, and the market isn’t sufficiently satisfied that the Fed will be there to “save the day”, risk appetite is likely to continue to deteriorate.

And while Bitcoin may hold up well due to strengthening narratives around it as a safe-haven, store of wealth asset, which have been emboldened since the Trump administration announced the creation of a strategic Bitcoin reserve, Ethereum is unlikely to receive much of a bid.

Fundamentals thus suggest a retest of $1,500 is looking very likely.

Buy the Ethereum Dip?

So if the Ethereum price is destined to break down to lower levels, would this be a good time for traders to buy the dip.

Yes, for traders willing to hold through significant near-term turbulence, buying any ETH dip would likely be a good move.

Macro uncertainties will not last forever. And, at some point, US monetary conditions are likely to considerably ease, meaning a surge of liquidity in the market.

Prior periods of strong Ethereum price performance have come at times of increased/growing liquidity from the Fed.

So a strong rebound is to be expected as the Fed juices the market. Meanwhile, over the long term, tailwinds from the Trump administration’s pro-crypto policy stance should also help Ethereum.

Eric Trump likes Ethereum. pic.twitter.com/Bl0s1zeygF

— Altcoin Daily (@AltcoinDailyio) February 3, 2025

The Trump administration is full of ETH HODLers. And regulatory clarity will give the Ethereum ecosystem quite a lot of room to develop over the coming years.

Traders should also remember that Ethereum remains the dominant DeFi chain, and the most trusted smart contract blockchain in crypto, hence its backing from BlackRock.

As ugly as things look right now, and as much FUD as there’s in the market, Ethereum’s long-term outlook remains strong.

Its biggest downside into the long term is likely to remain a deteriorating market share as nimbler rivals attract new users at a faster rate than Ethereum does.

That said, Ethereum is still far and away the best candidate for major institutions looking to participate in DeFi, due to its status as the most trusted and decentralized of the smart contract blockchains.

Accumulating ETH as it approaches $1,500 with a view to hold for at least a few years could be an awesome strategy.

Traders shouldn’t rule out the possibility that ETH reaches $10,000 by the end of Trump’s four-year term.

The post Ethereum Price Set to Drop to $1,500 Next – Buy the Dip? appeared first on Cryptonews.