Ethereum faces intense market pressure, and some analysts prepare for the worst.
In a 10 March post on X, Yuga Labs’ Vice President of Blockchain, known as “Quit”, warned that Ethereum (ETH) could drop as low as $200, marking a staggering 90% collapse from current levels.
“A true bear market target, if we’re just getting started, would be ~$200-$400. That’s an 80% drawdown from here, 90% total drawdown — in line with past bear markets.”
His comments sparked fierce debate in the crypto community, as ETH has already tumbled 22% in the past week, dropping to a low of $1,791 according to CoinGecko.
While some investors see Quit’s prediction as extreme, others warn that Ethereum’s liquidity crisis and macroeconomic pressures could lower prices.
Quit’s bearish outlook triggered mixed reactions among ETH holders.
- Some investors agreed that ETH could fall further, particularly if Bitcoin (BTC) drops to $66,000.
- Others dismissed the idea, arguing that Ethereum has matured since 2018, with institutional adoption and a more resilient ecosystem making a $200 ETH price unlikely.
One trader highlighted the psychological dilemma of setting a bottom, saying:
“I set $1,800 as the bottom, but now that we’re here, I’m asking myself: Could it drop to $1,200?”
Another investor countered that being too bearish could be as costly as being too bullish, urging traders to position for both scenarios rather than betting on a complete collapse.
Ethereum Whales Dump Millions to Avoid Liquidation
While the debate rages on, Ethereum whales are already taking action.
As ETH prices plunged below $1,800, large holders scrambled to protect their positions, moving millions of dollars in ETH to avoid liquidation risks.
Key Whale Movements
- A major ETH whale dumped $47.8 million in ETH, losing $32 million to prevent liquidation. Despite this, the whale still holds $64 million in Aave, with a liquidation price set at $1,316.
- Another investor with $5 million in assets tried to lower their liquidation price to $1,836, but was still liquidated as ETH fell below $1,800.
- A whale suspected to be linked to the Ethereum Foundation moved $56 million in ETH into a vault to avoid liquidation. The address, which deposited 30,000 ETH, was later not associated with the foundation.
These large-scale sell-offs and defensive moves indicate growing fear among major investors, signaling that Ethereum’s price could face more turbulence.
A mix of macroeconomic factors, investor sentiment, and on-chain stress fuels Ethereum’s latest downturn:
- Market-wide risk aversion – Crypto faces pressure from rising interest rate concerns and regulatory uncertainty.
- Leverage unwinding – Many traders borrowed against their ETH holdings, and the liquidation cascade is accelerating selling pressure.
- Institutional hesitancy – Unlike Bitcoin, Ethereum’s ETF approval remains uncertain, making it less attractive to large investors.
What’s Next?
With whales liquidating and investors divided on ETH’s future, the coming weeks could determine whether Ethereum stabilizes or plunges deeper into a prolonged bear market.
- If Bitcoin stabilizes, ETH could find a floor near $1,500-$1,800.
- If macro conditions worsen and liquidations accelerate, ETH could test new lows, potentially dipping toward the $1,200-$1,400 range.
- If Quit’s worst-case scenario unfolds, Ethereum could fall below $500, mirroring past bear market drawdowns.
For now, Ethereum remains on edge, and as one investor put it:
“Being too bearish can be just as dangerous as being too bullish.”
