- Ethereum plummeted 35% despite bullish sentiment from Eric Trump’s tweet, reflecting broader market struggles.
- Exchange reserves hit a multi-year low, suggesting potential future supply constraints amid continued outflows.
- Despite short-term volatility, Ethereum’s declining exchange reserves could set the stage for a supply-driven price surge.
According to the statistics from CryptoRank, Ethereum has dramatically fallen by 35 percent from February. In March, it traded at $1,840 from $2,850. This plummet followed a positive tweet regarding Ethereum by Eric Trump on February 4, 2025. Nevertheless, the market took the opposite direction. The overall crypto has also been dismal in terms of its value as it went down from $3.3 trillion to $2.6 trillion.
Ethereum’s Price Movement Since Early February
Initially, Ethereum’s price remained above $2,500 following the tweet but showed high volatility. Short-term recoveries occurred, but none sustained momentum. By mid-February, Ethereum fluctuated between $2,250 and $2,750, showing attempts at stabilization. However, by March 10, the price broke below $2,000, signaling a deeper decline. Consequently, Ethereum continued its downward direction, eventually settling at $1,840 by the end of March.
The decline in price indicates market responsiveness to external statements and investor sentiment. While Trump’s tweet was even seen as having a positive spin, general market conditions played an important role in Ethereum’s bearish behavior. Further selling pressure also caused additional price declines throughout March.
Exchange Reserves Signal Potential Supply Shock
Additionally, according to CryptoGoos, during the previous three years, Ethereum’s exchange reserves have gradually decreased. This pattern implies that more and more investors are keeping Ethereum off-exchange, which lowers the amount that is available. Reserves have decreased from more than 30 million ETH in April 2022 to roughly 18.2 million ETH in early 2025.
Ethereum reserves continued to decline during 2023, falling to 19 million ETH by that year’s end. Meanwhile, its price experienced a number of tops and corrections. Most notably, Ethereum surpassed $4,000 before experiencing a sharp pullback. Reserves remained at their low by early 2025, setting the stage for a probable supply squeeze. Prices could be driven higher if demand surges with the low supply.
