The crypto market is once again under pressure — and Ethereum is among the biggest losers. Today's decline is driven not only by market volatility, but also by investor caution ahead of the upcoming expiration of billions in BTC and ETH options, which is shaking confidence across the board.

🔻 The crypto heat map is glowing red — prices are down, and market sentiment is mixed. While a recent U.S.–China trade deal had briefly boosted digital assets, the momentum has shifted. Today, Ethereum is falling, dragged down by Bitcoin’s decline.

📉 Ethereum Follows Bitcoin into the Red

Ethereum recently benefited from bullish sentiment — climbing to $2,700 thanks to positive U.S. inflation data and geopolitical optimism. But the mood changed quickly. Today, ETH dropped 2.3% and is currently trading around $2,500, with a market cap of $309 billion.

📉 The main culprit? Bitcoin's price slump. Instead of reaching a new high as analysts had hoped, BTC fell to $102,000, triggering a broader crypto pullback.

⌛ $3.1B in Options Expiration Triggers Market Anxiety

Another critical factor is the looming May 16 expiration of BTC and ETH options, worth a staggering $3.1 billion. Investors are bracing for increased volatility, and many are stepping back from the market.

Traditional markets are also showing signs of stress. The S&P 500 index is nearing its top resistance level and may soon correct — which could drag Bitcoin down further, along with ETH.

Investor sentiment has clearly soured. Ethereum trading volume has dropped 37%, now sitting at $22.5 billion, while open interest is declining, according to CoinGlass — both signs of reduced confidence in the market.

At the same time, short positions now outnumber longs, reinforcing the bearish trend.

📊 What’s Next for Ethereum?

Not long ago, Ethereum looked poised for further gains. Analysts projected a rally toward $3,000, especially after breaking past key resistance at $2,121 and signaling a possible mini golden cross — a bullish technical pattern.

But now, a second scenario is gaining traction — a short-term pullback before another rally. Experts note that after a strong run-up, some correction is healthy and can set the stage for a surge to $4,000.

📉 If RSI (Relative Strength Index) confirms a bearish divergence, ETH may drop to the $1,872–$2,069 range — a key bullish support zone. A break below $1,872 would trigger further caution. If ETH heads toward $1,700, it risks falling all the way to $1,385.

Buying Opportunity or Start of a Bigger Drop?

Despite the warning signs, many analysts still see Ethereum’s dip as a buying opportunity. They believe the token is near a temporary bottom and has the potential to climb above $4,000 in the coming weeks.

However, traders should proceed with caution — especially if ETH falls below $1,872, confirming a bearish breakdown. A drop to $1,700 or lower could significantly worsen the market outlook.

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