TL;DR

• One well-known trader sees Ethereum’s dip to around $1,800 as a buying opportunity, while market fear echoes Warren Buffett’s advice to be greedy when others are fearful.
• Despite optimism, Ethereum faces strong headwinds, which might result in a further price collapse in the near future.

Good Time to Buy?

Ethereum (ETH) has been experiencing a severe downturn in recent months, with its price dropping by over 20% on a 30-day scale. However, some industry participants remain unfazed by the pullback, viewing it as a perfect buying opportunity.

The X user Doctor Profit told his almost 400,000 followers on X that he increased his exposure to the asset when it was trading at $1,800. He even called the current conditions “a gift for the long term.”

The trader revealed using 10% of his available cash for the purchase and putting aside the remaining 90% “to add more in the coming days.”

“I buy once the streets are filled with blood, now is a good time,” he stated. 

It might seem scary, but some renowned investors have actually recommended such actions in times of fear. The famous billionaire Warren Buffett once said, “Be fearful when others are greedy and greedy when others are fearful.”

Shortly after disclosing his ETH purchase, Doctor Profit claimed that the price of the cryptocurrency is sitting at a historical support of around $1,800. 

“The same support I have mentioned several months ago, now we dumped to this area! With this massive correction and fear we are perfectly sitting at this support! Undervalued now,” he argued.

How About a Deeper Correction?

It is important to note that a few hours after the aforementioned post, ETH dipped below the depicted level and currently trades at around $1,770. For its part, the entire cryptocurrency market experienced another retreat following China’s reaction to Donald Trump’s latest trade tariffs. 

Full-scale tariff war?

China hits ALL U.S. imports with 34% tariffs.

Nasdaq 100 futures nosedive 600+ points. Crypto felt it too. pic.twitter.com/l9eDJffZlu

— CryptoPotato Official (@Crypto_Potato) April 4, 2025

Several other factors, such as ETH’s exchange netflow, suggest that the cryptocurrency might continue to bleed in the short term. According to CryptoQuant data, inflows have surpassed outflows over the past week, signaling that investors are moving from self-custody to centralized platforms, thereby increasing immediate selling pressure.

The analytics firm recently estimated that the diminished network activity is one of the major reasons why ETH has been disappointing. This decline, combined with the plummeting average fees per transaction and per block, has pushed Ethereum’s burn rate to its lowest level since the Merge (September 2022). CryptoQuant estimated that since the Dencun upgrade last year, more ETH has been minted than burned, which explains the slump. 

The retreat of the whales is another worrying element that indicates more pain for the bulls. The renowned analyst Ali Martinez claimed that the number of large ETH transactions tanked by almost 64% from February 25 to March 31, signaling a substantial drop in whale activity. Additionally, large investors offloaded 760,000 ETH (worth over $1.3 billion) in the past two weeks alone.

Such sell-offs increase the circulating supply of the asset and could negatively impact its price (assuming demand doesn’t react accordingly). In addition, the whales’ actions may spread panic across the space, with smaller players following suit. 

It was another big week in the cryptocurrency markets, filled with notable developments and big price moves propelled by US President Donald Trump’s global political actions.

More precisely, his Trade War that escalated this week. In what he called ‘Liberation Day,’ the POTUS announced massive tariffs against numerous countries, including some of the country’s biggest partners. That was on April 2 and they should be incorporated on April 5.

Naturally, many countries and regions decided to fight back by announcing tariffs of their own. The latest to do so was China, which earlier today imposed a 34% retaliatory tariff on all goods imported from the United States.

These developments led to substantial volatility in all financial markets, including crypto. Bitcoin began the business week with a price slide to $81,200 but quickly started to regain traction and skyrocketed to just over $88,000 on Wednesday amid reports that Trump will remove Elon Musk from his inner circle.

However, that was just hours ahead of the tariff announcements on ‘Liberation Day’ and BTC quickly reversed its trajectory. In a matter of just a few hours, the cryptocurrency plunged by several grand and fell to $82,300. Its rebound was unsuccessful and bitcoin dumped to $81,200 on Thursday.

Another failed recovery attempt transpired today when BTC neared $85,000, but then the Chinese retaliation tariffs came on. Bitcoin reacted with an immediate plunge to $81,600. It now struggles below $83,000, being 2.5% down weekly.

More substantial weekly losses come from several altcoins, led by TON (-14%), LINK (-11%), SIU (-12.5%), and SOL (-10%). ETH, ADA, BNB, and DOGE are also deep in the red.

Market Data

Market Cap: $2.748T | 24H Vol: $112B | BTC Dominance: 59.8%

BTC: $82,720 (-4.5%) | ETH: $1,788 (-5.3%) | XRP: $2.1 (-4.2%)

This Week’s Crypto Headlines You Can’t Miss

Arthur Hayes Predicts Money Printing Boom, Bullish for Bitcoin. With everyone focused on the Trade War, multiple experts have rushed to offer their opinion on how these uncertain times can impact BTC and the financial markets. Arthur Hayes outlined his positive prediction, indicating that bitcoin has to maintain this level by US tax day (April 15) to remain in a bull cycle structure.

Here’s Why Ethereum (ETH) Continues to Bleed, According to CryptoQuant. Ethereum continues to underperform, with its price tanking below $1,800 earlier this week. CryptoQuant named a few reasons behind ETH’s struggles, including the diminishing network activity.

Are Trump’s Tariffs Impacting Cryptocurrencies as Expected? Santiment Weighs In. The tariffs implemented by Trump and replicated by numerous other countries in response have an undeniable and immediate impact on BTC and the crypto market. However, what are the long-term effects? You can find out here.

Stablecoin Issuer Circle Files for IPO After Big Revenue Report. The more positive regulatory landscape in the United States allowed Circle, the company behind the second-largest stablecoin, to file for an Initial Public Offering (IPO). This came after a strong revenue report from the firm for Q1, 2025.

Metaplanet Increases Bitcoin Holdings to 4,046 BTC with Latest Acquisition. Metaplanet, following the example by Michael Saylor’s Strategy, seems unfazed by the global economic uncertainty and continues to purchase BTC frequently. Saylor’s company did the same this week.

Bitcoin, Ether Post Worst First Quarter Performance in 7 Years. Despite the big expectations for February and March, Q1 of this year turned out to be the worst for the two largest cryptocurrencies by market cap. BTC dropped by just shy of 12%, while ETH’s price tumbled by more than 45%.

Charts

This week, we have a chart analysis of Ethereum, Ripple, Cardano, Shiba Inu, and Solana – click here for the complete price analysis.

Ethereum remains under pressure as the broader market sentiment struggles to shift bullish. The price continues to hover around key demand zones, with little sign of immediate strength from bulls, while derivatives and on-chain activity show signs of caution.

Technical Analysis

By Edris Derakhshi

The Daily Chart

On the daily timeframe, ETH has failed to recover above the previous support turned resistance near $2,000. The daily structure remains bearish, and the rejection from the $2,200-$2,000 supply zone has intensified selling pressure.

The 200-day moving average, currently positioned above $2,800, underscores the broader bearish bias, while RSI lingers in oversold territory, suggesting that downside momentum is still present but potentially weakening. The next strong support lies near the $1,550 region, which is likely going to be touched soon.

The 4-Hour Chart

Zooming into the 4-hour chart, ETH has formed a horizontal consolidating pattern, with lower highs compressing against horizontal support near $1,750. The asset recently retested the $1,900 zone but was quickly rejected, failing to create any bullish breakout.

The RSI has also pulled back from its previous bounce, signaling weakening momentum. A confirmed breakdown below the $1,750 support would likely trigger further downside, while a close above the pattern would be the first sign of short-term strength.

Sentiment Analysis

By Edris Derakhshi (TradingRage)

Exchange Reserve

From a sentiment and open interest perspective, Ethereum’s open interest has remained elevated compared to historical values in recent years, even as the price continues to slide.

This suggests an influx of aggressive short positioning or late leverage entering the market. If this open interest unwinds rapidly, it could trigger short squeezes on any upside volatility. However, as long as it remains high while price drops, it adds pressure and risk of continued liquidations, especially near key support zones.