Ethereum Drops to 2-Year Low as Bearish Pressure Intensifies

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• Ethereum falls to $1,437, marking a 2-year low as a bearish trend and capital rotation into Bitcoin intensify.

• Despite the price drop, Ethereum shows strong on-chain activity with record DeFi TVL and ongoing network upgrades.

Ethereum (ETH) fell to its lowest level since March 2023, following a global bearish trend in the crypto markets. The token fell to around $1,437 on April 7, 2025, as a bearish trend continues following the macroeconomic uncertainty.

Ethereum now currently stands below its 2024 highs, reducing hopes of a near-term recovery. Compounding the pressure is a weakening of Ethereum’s performance versus Bitcoin. The ETH/BTC ratio dropped to 0.019, its lowest point in more than five years, showing a notable capital rotation into Bitcoin, which has shown relative strength during recent volatility.

Technical indicators also show increased downward momentum. The Relative Strength Index (RSI) has approached oversold levels, signaling continued selling activity. Meanwhile, the Chaikin Money Flow (CMF) is in negative territory, suggesting declining buying pressure and increased capital outflows from Ethereum markets, according to data from Altindex.

Ethereum Network Activity Remains Strong Despite Price Action

Despite the sell-off, on-chain data shows continued network engagement. The Total Value Locked (TVL) across Ethereum-based decentralized finance (DeFi) protocols surpassed 30.2 million ETH as of April 6, a 22% increase over the past month. 

The rise surpasses growth on rival networks such as Solana and BNB Chain, a proof of sustained adoption and confidence in the capabilities of the Ethereum network.

Development activity on Ethereum also remains strong. Core contributors are actively working on protocol upgrades aimed at improving scalability and reducing transaction costs. The ongoing efforts include proto-danksharding and expanded Layer 2 rollup adoption, both seen as key to Ethereum’s long-term scaling roadmap.

On-chain data also indicates impressive resistance at the price level of $1,900, at which there are a few 3 million addresses that are in loss with over 6 million ETH. The pooling might induce extra selling pressure when the holders try to get back even, maybe forming an impenetrable barrier towards price appreciation.

While Ethereum remains under technical and macro-driven pressure, the underlying network metrics suggest continued long-term viability. Analysts are watching for signs of stabilization, with key support and resistance levels—as well as broader market conditions—expected to guide ETH’s next move.