Ethereum Price Forecast – Why ETH Could Be Headed to $1000

Highlights:

• Ethereum bulls are losing momentum at $1792.9 support
• Loss of support could trigger a correction to prices below $1700
• Some analysts point to a possible drop to $1000 driven by weak macros

Ethereum’s price is in correction, mirroring the broader cryptocurrency market. At the time of writing, Ethereum was trading at $1,798.75, which is 4.15% lower for the day. Ethereum’s declining price today is linked to US Liberations Day tariffs, which caused ripples across the financial markets. This has been compounded by the market’s relative lack of response to Ethereum’s upcoming network upgrade. This, along with the decline of interest in the meme coin market, has fostered a decline in Ethereum-based decentralized applications (DApps) and further deepened the network’s depressed state.

Trump’s tariffs will result in a massive transfer of wealth from working people into the hands of millionaires and billionaires. Here’s how. pic.twitter.com/QqBWTGyDf9

— Robert Reich (@RBReich) April 2, 2025

Professional Traders Remain Bearish on Ethereum Price

Ethereum’s derivatives data shows that pro traders are still cautious. The 25% delta skew, which measures the balance between call and put options, remains in a skewed risk-off position. While it improved from 9% to 7% on March 31, whales’ persistent unwillingness to buy Ether suggests they expect further downward price action.

They left because the UX is trash on mainnet and the ethereum community never agreed upon an L2 to refocus economic activity on. And because there are few opportunities within the ETH ecosystem generally because the ethereum community refuses to embrace memecoins, and instead has…

— grimacexbt💹🧲 (@grimacexbt) April 2, 2025

Retail Investors Standing on the Sidelines Add to Ethereum Bearish Sentiment

Retail sentiment also appears muted, as perpetual futures funding rates have remained neutral since March 31. This means that traders are not attempting to defend Ethereum’s price. One possible explanation is the poor performance of Ethereum exchange-traded funds (ETFs), which saw net outflows of $37 million over the last two weeks.

U.S. spot Ethereum ETFs saw $51.3M worth of total net outflows on April 2

U.S. spot Ethereum ETFs experienced a combined net outflow of $51.3 million on April 2, marking the second consecutive day of outflows, according to data from Farside Investors. Among them, BlackRock’s…

— CoinNess Global (@CoinnessGL) April 3, 2025

While short-term sentiment remains bearish, external factors could shift the narrative. The Trump family’s investment in Ethereum through World Liberty Financial and Eric Trump’s subsequent endorsement might be positive catalysts. For the moment, both professional traders and retail investors remain on the sidelines.

Ethereum’s Lack of Performance in Comparison to Bitcoin

Ethereum’s struggles are exacerbated by the diminishing ETH/BTC ratio, which recently dipped to 0.022 – its lowest point since December 2020. Ethereum has depreciated more than 73% in value relative to Bitcoin since September 2022, which illustrates the decline in Ethereum’s market dominance. Compared to Bitcoin’s 10% decline year-to-date, Ethereum’s 46% decrease signals a much waning market.

The declining ETH/BTC ratio implies that Investors have started to switch their attention to alternative layer-1 solutions like Solana, Binance Chain, and Avalanche. Meanwhile, Ethereum’s portion of total DeFi TVL decreased from 61.64 percent in February 2024 to 52.54 percent in April 2025. At the same time, Solana’s TVL grew from 2.84 percent to 7.24 percent, demonstrating a changing preference among DeFi participants.

The ETH/BTC ratio has dropped to its lowest level since late 2020, showing a significant decline in #Ethereum's relative performance.

While other Chains like #Solana, #BNBChain & #Avalanche gain ground on $ETH. 👀 pic.twitter.com/XtH1FVZAvz

— Crypto Rand (@crypto_rand) April 2, 2025

Analysts Point to Possible Drop to $1000

Bloomberg strategist Mike McGlone warns that Ethereum could test the $1,000 mark again if the macroeconomic backdrop deteriorates. Analysts remain sharply divided. Ethereum has also shown technical weaknesses, like breaking key support levels and failing to sustain rallies above $4,000.

WARNING ETH HOLDERS 🚨

ETH might revisit 1000-1200$ before having its run later this year.

In prior cycles, ETH has revisited the lows of the logarithmic regression trend line before mooning.

This will likely be associated with more pain for stocks forcing the FED to pivot. pic.twitter.com/bWzkmJwpDd

— Makeit (@Makeit_Anon) April 3, 2025

Technical Analysis – Ethereum Price Trading at Critical Support

After days of correction, Ethereum has found some support at $1792.9. However, this support appears weak as the broader market increasingly turns bearish. If bears take control and push Ethereum through the $1792.9 support, then a price correction as low as $1500 could follow.

On the other hand, if the bulls regain some strength and push Ethereum off the $1792.9 support, then a rebound to the multi-day resistance at $1835.3 could follow. A correction through the $1792.9 support is more likely for the two scenarios. The macro-environment does not support a big rebound at the moment.