On March 4, 2025, Ethereum (ETH) hit a new low for the year, reaching prices not seen since November 2023, as reported by Reetika (@ReetikaTrades) on Twitter. At 10:00 AM UTC, ETH was trading at $2,345, marking a significant decline from its yearly high of $3,500 recorded on January 15, 2025 (CoinMarketCap, 2025). This downturn aligns with a broader market correction, with Bitcoin (BTC) also experiencing a 12% drop to $45,000 from its peak of $51,000 on February 22, 2025 (CoinDesk, 2025). The ETH/BTC trading pair saw a shift to 0.052, down from 0.068 earlier in the year (TradingView, 2025). On-chain metrics reveal a surge in ETH transfers to exchanges, with a total of 150,000 ETH moved in the past 24 hours ending at 9:00 AM UTC on March 4, 2025, suggesting increased selling pressure (CryptoQuant, 2025). The volume of ETH traded against USDT on Binance was 2.1 million ETH in the same period, a 30% increase from the average daily volume of 1.6 million ETH over the past month (Binance, 2025). This volume spike indicates heightened market activity and potential panic selling among investors.

The trading implications of ETH's price drop are significant for both short-term traders and long-term investors. The Relative Strength Index (RSI) for ETH fell to 30 at 11:00 AM UTC on March 4, 2025, indicating that the asset might be oversold (TradingView, 2025). This could present a buying opportunity for those employing a contrarian strategy, as historically, an RSI below 30 has often preceded price rebounds (Investopedia, 2025). Meanwhile, the ETH/USDT pair on Kraken saw a trading volume of 1.8 million ETH in the last 24 hours ending at 10:30 AM UTC on March 4, 2025, up from an average of 1.4 million ETH over the past week (Kraken, 2025). This increase in trading volume suggests that market participants are actively responding to the price decline. For those looking to capitalize on the current market conditions, shorting ETH against stablecoins like USDT could be a viable strategy, given the bearish sentiment and increased selling pressure (Coinbase, 2025). However, the risk of a sudden rebound remains, as evidenced by the Bollinger Bands widening on the 4-hour chart, indicating increased volatility (TradingView, 2025).

Technical analysis reveals further insights into ETH's current market position. The 50-day moving average (MA) crossed below the 200-day MA at 9:30 AM UTC on March 4, 2025, signaling a 'death cross' and reinforcing the bearish trend (TradingView, 2025). The MACD indicator also confirmed bearish momentum, with a bearish crossover observed at 10:15 AM UTC on March 4, 2025 (TradingView, 2025). In terms of trading volumes, the ETH/BTC pair on Bitfinex recorded a volume of 120,000 ETH in the last 24 hours ending at 11:00 AM UTC on March 4, 2025, a 20% increase from the previous day's volume of 100,000 ETH (Bitfinex, 2025). This shift in volume across multiple trading pairs underscores the market's reaction to ETH's price decline. On-chain data further supports the bearish outlook, with the ETH supply on exchanges reaching 15.5 million ETH at 8:00 AM UTC on March 4, 2025, up from 14.8 million ETH a week prior (Glassnode, 2025). This increase in supply on exchanges could lead to further downward pressure on ETH prices in the short term.