Ethereum Price Battles with $2K After Brief Rally, What to Expect?

Ethereum price traded just above $2,000 on March 24, dropping over 2% from the $2,090 high reached earlier this week.

The brief surge—fueled by bullish sentiment over the upcoming Hoodi testnet deployment and Pectra upgrade—proved unsustainable. ETH ended last week around $1,965, exposing the asset to renewed downside risks heading into the weekend.

Trump Rally Fades Fast as Traders Exit ETH Longs

Trumps speech momentarily sparked market momentum, sending ETH above $2,067 on March 21 for the first time since March 9, according to CoinMarketCap. However, bulls failed to maintain the push, as prices dropped swiftly by over $100 within hours.

CoinGlass liquidation data showed that $17.18 million in long positions were rekt in the past 24 hours, compared to just $7.45 million in shorts. That imbalance reflected overleveraged bullish trades betting on extended upside that failed to materialize.

Adding to bearish pressure, total rekt positions reached $24.63 million, with another $3.47 million wiped in just four hours.

Derivatives Data Confirms Weak Bullish Conviction

Ethereums open interest in futures markets dropped below $20 billion, down to $19.94 billion over the weekend. Trading volume also fell sharply by 26.7%, according to CoinGlass.

Open interest in ETH options declined by 5.45% to $5.88 billion, signalling reduced risk appetite among institutional players.

Ethereum Derivatives Markets Analysis. Source: Coinglass

Despite futures open interest hitting an all-time high of 10.23 million ETH on March 21, the annualized premium dropped below 4%, per Laevitas. This indicates weak demand for leverage and lower confidence in “cash and carry” strategies.

Meanwhile, the ETH/USDT long/short ratio on Binance stood at 3.42 and 3.44 on OKX. Binance top traders showed a higher ratio of 4.16. These figures show lingering bullish positioning, but with open interest declining, follow-through appears limited.

Low ETF Demand Macro Fears Weigh on ETH Outlook

Ether exchange-traded funds (ETFs) saw net outflows of $307 million over the two weeks ending March 20. This decline reflects broader macroeconomic concerns, including global trade tensions, U.S. government spending cuts, and rising inflation fears.

ETH price has underperformed the broader crypto market, falling 28% since Feb. 21 versus a 14% market-wide decline.

Adding to the pressure, Ethereums 7-day base layer revenue plunged to $605,000 on March 17, down from $2.5 million two weeks earlier. Lower fees signal weakening demand for Ethereum network services despite its successful shift to proof-of-stake and layer-2 scaling efforts.

Whale Activity and Low Exchange Supply Offer Mixed Signals

Santiment data showed Ethereums exchange supply dropped to a 10-year low of 8.71 million ETH, down 16.4% from seven weeks ago. The reduced exchange supply suggests accumulation by long-term holders, potentially creating a floor near current prices.

ETH supply on exchanges. Source: Santiment

Accumulation addresses have added 4.77 million ETH since Jan. 1, with 2.11 million ETH added in March alone—an increase of 32% year-to-date. CryptoQuant data confirms that these wallets have not recorded any outflows.

Ali Martinez, also known as Ali Martinez, added on X that whales bought over 120,000 ETH in the past 72 hours. That buying spree, however, has yet to be reflected in the Ethereum price trend.

Ethereum Price Outlook: $1,850 Remains Critical

ETH now trades just above $2,000. If prices stagnate, further declines in participation could push open interest below $20 billion, weakening support.

Trader Mikybull Crypto noted that the 2-year moving average indicator flashed a macro bottom buy signal. However, price action suggests bulls need more than technical signals to regain control.

The Ethereum Pectra upgrade, which includes ERC-20 gas payments and blobspace expansion, is set for a Hoodi testnet deployment next week.