- Ethereum price may be at risk of a deep dive after forming a bearish flag pattern on the three-day chart.
- The network’s DEX volume tumbled to $42 billion in March this year.
- Hyperliquid, a top DEX network, handled over $200 billion in volume.
Ethereum price has remained in a narrow range this month, and its technicals suggest that it may be on the cusp of a bearish breakdown as its DEX volume drops. ETH token was trading at $2,000, down sharply from the all-time high of nearly $5,000.
Ethereum DEX Volume is Plunging as Traders Turn to Hyperliquid
ETH price has dropped into a bear market this year, and the weak fundamentals points to more downside in the near term.
Data shows that all decentralized exchanges in the network handled over $37 billion in the last 30 days. The volume stood at $42 billion in March, the lowest level since October 2024 and much lower than last year’s high of over $128 billion. The biggest players in the network are Uniswap, Dodo, and Fluid.
This decline was mostly because of the ongoing weakness in the crypto market, where Bitcoin and most altcoins have plunged in the past few months. In most cases, traders often stay away when crypto tokens are in a strong downward trend.
READ MORE: Bitcoin Price at Risk as Trump Threat to Iran Nears, Odds of Democrats Flipping Senate Rise
Ethereum, a chain with hundreds of DEX networks, was beaten by Hyperliquid, a popular perpetual futures DEX platform that has become popular among traders. Data shows that the Hyperliquid handled over $190 billion in the last 30 days. The report also shows that its perpetual futures volume was over $209 billion during the month.
Hyperliquid has become a major player in the trading industry, especially during the ongoing Iran war as it has become a popular venue to trade crude oil, natural gas, and precious metals.
The ongoing waning activity on Ethereum has led to a sharp decline in activity and network fees. Data shows that the network’s transactions dropped by 5% in the last 30 days, while the fees collected came in at $10 million. In contrast, Hyperliquid made over $52.7 million in the same period.
Ethereum Price Technical Analysis
The three-day chart shows that Ethereum keeps moving from bad to worse. It formed a death cross pattern as the 50-day and 200-day Exponential Moving Averages (EMA) crossed each other on February 12.
The coin has been in the process of forming the second bearish flag pattern since last year. It has moved to the flag section. It also remains below the Supertrend indicator.
Therefore, the most likely ETH price forecast is bearish, with the next key target being the year-to-date low of $1,742. A drop below that level will point to more downside, potentially to the psychological level at $1,500.
READ MORE: Siren, StakeStone, Zebec Network Rally as the Crypto Winter Continues
