The crypto market heatmap clearly presents the picture of the crash, including the decline in the Ethereum price. The market has been facing high volatility with the massive trend shifts among investors and mixed sentiments. The US-China deal recently catered to the uptrend in digital assets, but that has changed today. Let’s discuss why the ETH price is down today.
Ethereum Price Dips Today With Bitcoin Crash
With a highly bullish uptrend, ETH price surged to $2.7k under the influence of the US-China trade deal and US CPI data. However, the trends have reversed today, resulting in the 2.3% crash in the Ethereum price, currently trading at $2.5k, with a market capitalization of $309.21B.
The prime reason behind this drop is the decline in the Bitcoin price, the biggest cryptocurrency on the market. As the BTC plummeted to $102k instead of a new high, as anticipated by experts, the broader crypto market is struggling.
More importantly, further Bitcoin price crash odds are building, as $3.1B in BTC & ETH options will expire on May 16. Additionally, a top is forming on the S&P 500. As a result, it may begin to move downward, pushing BTC in the same trajectory.
Options Expiry Alert
Tomorrow 08:00 UTC: Over $3.1B in BTC & ETH options expire on Deribit.$BTC: $2.66B notional | Put/Call: 0.99 | Max Pain: $100K
$ETH: $525M notional | Put/Call: 1.24 | Max Pain: $2,200
BTC skew is neutral, ETH puts slightly outweigh calls. Price… pic.twitter.com/jBj4C4tMvX
— Deribit (@DeribitOfficial) May 15, 2025
Under this, the investors’ sentiments are impacted, resulting in the 37% crash in Ethereum’s trading volume, currently at $22.53B. Additionally, the Open Interest is declining per CoinGlass data, signaling reduced enthusiasm among investors.
Likewise, the short positions are higher than the long positions, impacting other trade decisions as well.
Ethereum Price to Dip Further Before Rally to $4,000
Until recently, the Ethereum trajectory was highly bullish, but the recent pullback brought additional uncertainty. CoinGape analysts earlier pointed out that there are two ETH scenarios depending on technical factors. The first one speaks of a continuous uptrend to $3,000, considering its breakout from key resistance of $2,121 and potential mini golden cross formation.
However, as the ETH price crashes, it speaks of the second scenario of retrenchment before a rally to $4,000. Experts claim that a pullback is healthy after a massive rally. If the RSI shows bearish divergence, ETH might collapse to $1,872 – $2,069, which is the bullish weekly breaker zone.
However, instead of concluding its crash, the experts’ Ethereum price prediction calls it an opportunity to buy before it jumps to $4000 and higher. Investors must await bearish signal confirmation, that is, a dip below $1,872. Additional caution is important if it moves down to the $1,700 mark, as ETH could crash to $1,385.
The post Ethereum Crash: Top Reason Why ETH Price is Down Today appeared first on CoinGape.
