Ethereum Breakdown: Analyst Eyes $1,200 Price Target

Bitcoin has dropped below the $85,000 level as selling pressure returns across the crypto market. After several days of tight consolidation just under the $88K resistance zone, bearish momentum has regained control, dragging prices lower and signaling the end of a short-lived period of stability. The broader financial landscape remains tense, with trade war fears and mounting uncertainty continuing to weigh heavily on risk assets — and Bitcoin is no exception.

Global markets are facing increasing volatility, driven by geopolitical tensions and fragile investor sentiment. As traditional markets falter, the crypto space has followed suit, showing signs of weakness amid macro headwinds. Many traders are now watching for signs of deeper corrections across the board.

Despite the pullback, there may be a silver lining. According to fresh data from CryptoQuant, OTC (Over-the-Counter) desks are draining at a fast pace. This trend often indicates increased institutional accumulation — as OTC transactions are typically used by larger players to avoid slippage on exchanges. While short-term price action remains bearish, the reduction in OTC supply could be an early signal of long-term confidence building under the surface. For now, Bitcoin must find stability before bulls can attempt a meaningful rebound.

Bitcoin Holds $84K As Analysts Debate Market Direction

Bitcoin is at a critical point, with bulls struggling to reclaim the $90,000 level but managing to hold firm above the $84,000 support zone. This tight range reflects growing uncertainty in the market, as price action stalls and sentiment becomes increasingly divided. Some analysts argue that the bull market has run its course, pointing to fading momentum and macroeconomic pressure as signs that a deeper correction is underway. Others believe that this is simply a healthy pause in a longer-term uptrend, with new all-time highs still ahead.

Top analyst Quinten Francois has weighed in, pointing to a key on-chain metric that may support the bullish case. According to Francois, the total balance held by OTC desks has been steadily draining since January 2022 — a trend that has continued into 2025.

A declining OTC desk balance typically signals increasing demand from large-scale buyers, such as institutions or high-net-worth investors. These desks are used to facilitate large trades off-exchange to avoid slippage, so when their balances trend down, it often means big players are buying directly and moving assets into cold storage or long-term holdings. This can reduce circulating supply and act as a quiet form of accumulation during periods of uncertainty.

While short-term price action remains uncertain, the continued OTC desk outflows suggest that large investors are positioning for long-term gains. For now, all eyes remain on the $84K–$90K range. A breakdown below support could trigger deeper losses, but a breakout above resistance may reignite bullish momentum — especially if institutional interest continues to grow behind the scenes.

BTC Struggles To Reclaim Higher Supply Levels

Bitcoin is trading at $84,100 after losing the 200-day moving average (MA) and exponential moving average (EMA), both of which were positioned around $85,500. This breakdown has weakened the bullish structure and placed BTC in a vulnerable position, with momentum now clearly favoring the bears. For bulls to regain control, they must hold above the $82,500 support level in the coming sessions.

Maintaining this level would signal stability and could pave the way for a rebound toward the key resistance zone between $89,000 and $91,000. Reclaiming that area would be a significant step toward restoring bullish sentiment and potentially reigniting the broader uptrend.

However, if BTC fails to hold above the $82,000 mark, the market could see intensified selling pressure and a sharp drop below $80,000. A break of that psychological level would likely confirm a deeper correction and shift sentiment further in favor of the bears.

With volatility rising and macroeconomic uncertainty still shaking global markets, the next few days will be critical for Bitcoin’s short-term direction. Bulls need to act quickly to avoid further downside and re-establish momentum above the $85K mark.

Featured image from Dall-E, chart from TradingView

Ether's declining appeal as an investment comes from layer-2’s draining value from the main network and a lack of community pushback on excessive token creation, a crypto venture capitalist says.

“The #1 cause of this is greedy Eth L2s siphoning value from the L1 and the social consensus that excess token creation was A-OK,” Castle Island Ventures partner Nic Carter said in a March 28 X post.

Ether “died by its own hand”

“ETH was buried in an avalanche of its own tokens. Died by its own hand,” Carter said. He said this in response to Lekker Capital founder Quinn Thompson’s claim that Ether is “completely dead” as an investment.

Today is a crucial day in the cryptocurrency market, as more than $14 billion worth of Bitcoin and Ethereum options are due to expire. Such a huge expiration may result in significant price changes and trading volumes. Currently, Bitcoin is trading at around $85,000, down by 3% from earlier this week.

Market Reaction To Bitcoin, Ethereum Options Expiry

Based on figures from Greeks.live, the aggregate options expiring today comprises 139,000 Bitcoin options worth about $12.1 billion. Another 301,000 Ethereum options worth about $2.13 billion are also expiring. The put-call ratios of these options stand at 0.49 for Bitcoin and 0.39 for Ethereum, reflecting differing degrees of trader sentiment.

The Andromeda Vote for MultiversX (EGLD) is happening until April 7, 2025, following its testnet deployment. This proposal for a protocol upgrade (v1.9) could impact EGLD’s price as such improvements often drive interest and potential price increases. A favorable vote might boost community confidence and attract new investors looking for positive developments. Conversely, resistance or defeat of the proposal might yield the opposite effect. Traders should watch community sentiment during this period. For detailed information, please visit the source.

STP’s partnership with Allo for launching the Autonomous Worlds Engine on March 29, 2025, is promising due to its potential to enhance AI-driven applications and economic simulations. This collaboration could lead to advancements in tokenized worlds and onchain economies, possibly increasing STPT’s value through innovation. Such strategic partnerships may attract developers and investors intrigued by AI use in blockchain. However, without clear details on implementation success, the price impact might be speculative initially. To explore more about this partnership, see the source.

Bybit is delisting several coins, including BOB Token and DSRUN, which is set to occur on April 4, 2025. Delistings can cause price drops since they reduce accessibility for trading on a major platform. If a token loses significant trading volume, it can suffer decreased liquidity, making price recovery harder. Traders might sell off these tokens quickly to avoid holding an asset with fewer trading options. Thus, staying updated on follow-up announcements for any further trading support is crucial. For more details, check the source.