Ethereum (ETH) Opened Trading at $1,913 on Wednesday, March 18

Ethereum opened trading at $1,913 on Wednesday, March 18, consolidating within a 5% range below the $2,000 resistance as investors awaited the U.S. Federal Reserve's rate decision.

Ethereum price opened trading at $1,913 on Wednesday, March 15, moving in a 5% trading range.

What Happened: The world’s second-largest cryptocurrency was seen consolidating below the $2,000 resistance ahead of the U.S. Federal Reserve’s interest rate decision.

Bitcoin (BTC) has continued to extend its lead over Ethereum (ETH) by 30% over three weeks, with the BTC/ETH ratio hitting a record high of 44.6 on March 14.

As Bitcoin trades at $83,000 and Ethereum at $1,900, 1 BTC can now buy more than 44 ETH—a 30% increase from the 1:33 ratio seen at the recent lows on February 25.

The sharp devaluation of Ethereum can be attributed to two key factors. Firstly, President Trump’s new trade tariff policies have rattled the global markets, prompting crypto investors to seek safety in Bitcoin over Ethereum.

Secondly, ETH price has struggled with network scalability issues and failed updates, which have dampened investor confidence. Historical data suggests that Ethereum’s devaluation accelerated after the Merge, with multiple failed network upgrades pushing ETH supply higher than pre-Merge levels.

The Ethereum Foundation attempted to regain control by shuffling leadership in February, but investor sentiment remains low following the disappointing Pectra and Hoodi updates.

For context, Ethereum DeFi’s total value locked (TVL) stood at $118 billion on February 19.

But according to DefiLlama data on March 19, that figure has now plunged to $89 billion, indicating a $29 billion capital outflow—25% of the total deposits within Ethereum’s DeFi ecosystem.

This aligns with ETH’s 30% price decline, further cementing Bitcoin’s dominance as the BTC/ETH trading ratio reached new highs.

What’s Next For ETH Price?

The $29 billion drop in Ethereum’s DeFi TVL, along with ongoing scalability struggles ahead of the Fed rate decision, point towards bearish risks for ETH price.

With liquidity drying up from the DeFi ecosystem, ETH coins previously locked in smart contracts are trickling into the short-term market supply.

If the capital outflows persist, it could put further downward pressure on ETH, potentially testing the $1,500 support zone.

Moreover, with Bitcoin’s dominance increasing, ETH price may lose more market share in the near term, especially if the U.S. Fed's rate decision on Wednesday falls short of expectations.

Ethereum price forecast signals lean neutral as it consolidates at $1,941 after a prolonged downtrend, with key technical indicators signaling potential volatility ahead.

The 50-day Exponential Moving Average (EMA) at $2,413 and the 100-day EMA at $2,695 suggest a bearish trend, while the 200-day EMA at $2,851 indicates long-term resistance.

Ethereum remains significantly below these moving averages, highlighting ongoing selling pressure. However, a bullish reversal could emerge if buyers regain momentum above short-term resistance levels.

The Bearish Balance Power (BBP) indicator at -107.25 indicates that sellers have dominated price action, impacting a downward move over the past month.

Recent price action shows a series of lower highs and lower lows, confirming the bearish market structure. Nonetheless, decreasing volume on red candles implies that selling momentum may be weakening, leaving room for a potential relief rally.

A breakout above $2,100 could trigger a short squeeze, forcing bears to cover positions, which might result in a rapid ascent toward $2,400-$2,500 before an ultimate correction.

If the U.S. Federal Reserve’s rate decision on Wednesday sparks a positive market reaction, Ethereum could quickly rise above $2,100, invalidating the bearish outlook and exposing short sellers to significant liquidations.

However, failure to reclaim this level could lead to another retest of $1,700-$1,500, continuing the current downtrend.