Ethereum Crashes 20% in Just 3 Days – What’s Next?

The crypto market is going through a turbulent zone. Indeed, Ethereum (ETH), the second-largest cryptocurrency by market capitalization, has suffered a brutal drop of 20% in just three days, which brings its price around $2,100. Such a sudden correction raises questions: is it just a simple episode of volatility or a warning signal for investors? Between unfavorable macroeconomic factors and signs of resilience in the derivatives market, the future of ETH is hanging by a fragile balance.

A sudden crash under macroeconomic pressure

The market was caught off guard by the extent of the decline. Thus, ETH, which seemed resilient despite recent fluctuations in Bitcoin, collapsed in a context of global economic tensions. The protectionist policy announced by Donald Trump, notably the threat of new tariffs against China, Canada, and Mexico, has created a climate of uncertainty across all financial markets, including crypto. At the same time, declining U.S. economic indicators amplified the selling pressure: unemployment claims surged to 242,000, a record in three months, while pending home sales fell by 4.6% in January, their largest historical drop.

This situation triggered a wave of panic, exacerbated by cascading liquidations on leveraged trading platforms. Investors, seeing ETH lose its technical supports, cut their positions, which accelerated the drop. However, despite this brutal correction, signals suggest that the downward pressure could slow, or even pave the way for stabilization.

A resilient derivatives market and a potential rebound

While ETH was weathering this correction, indicators from the derivatives market show no widespread panic. The annual premium on futures contracts for Ether is currently at 7% above the spot market, compared to 6% a few days earlier. This slight rebound indicates a mitigation of selling pressure, especially below the $2,600 threshold. Moreover, the 60-day delta skew indicator, which measures the balance between call and put options, remains within a neutral range of -6% to 6%, a sign that institutional players are not giving in to panic.

In this context, several scenarios remain possible. If the upward trend resumes and ETH manages to regain $2,500, the market could see a return toward $2,800 in the coming weeks. Conversely, a continuation of the macroeconomic decline could lead to a new wave of selling, which would hinder any attempt at recovery. Ethereum’s stability now hinges on the evolution of global economic conditions, but also on the ability of buyers to defend critical technical levels.

Ultimately, a rebound toward $2,800 remains plausible, but the coming weeks will be decisive. If Ethereum manages to reassure investors and take advantage of the slowdown in Solana, it could regain its momentum. Conversely, a still uncertain macroeconomic context and weak adoption of its Layer 2 ecosystem could hinder its recovery and prolong volatility in the market.