The heavy fall of Ethereum below 3,000 dollars; Is the bull rally officially over?

study time: 2 minutes

Following the massive selling pressure in the market, Ethereum fell below $3,000 on Monday; A level that had not been seen in the last four months. This drop, after a correction of about 40% from the historical ceiling of $4,956, has again raised the question of whether Ethereum’s upward trend is over?

Analysis shows traders are mostly influenced by macro conditions: worries about the global economy, new import tariffs, weak corporate performance and uncertainty about the future of the AI ​​industry.

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On the other hand, the demand for bullish leveraged transactions in the Ethereum market has decreased, and the premium of futures contracts remains below the neutral level of 5%, which indicates the extreme caution of investors.

Companies that hold Ethereum reserves are also now facing unrealized losses, which has dampened the interest of retail investors in the sector.
At the network level, the situation is not promising either: the total value of locked assets (TVL) in Ethereum reached $74 billion, which is 13% less than the previous month, and the transaction volume of decentralized exchanges is down 27% compared to last month.

However, analysts say that if global tensions ease and liquidity returns, Ethereum could rise again to the $3,900 range.