Ethereum price is under focus in crypto space and particularly in relation to Bitcoin as it gets closer to a historically strong support level on ETH/BTC pair. After a descending triangle trend from mid 2021 through early 2025, the ETH/BTC pair has now reached a level where it showed a buying range in late 2020. Such a technical development combined with increased open interest in the futures is fueling the debate on trend reversal.

Ethereum Price Eyes Recovery: Key Support Level Could Spark Reversal

According to a recent post on X, analyst AndrewCryptoHQ noted that ETH/BTC is now trading at a crucial technical level. This level previously acted as a launchpad for gains during Q4 2020. Since its peak in mid-2021, the pair has remained in a downtrend, posting consistent lower highs and lower lows.

As of late March 2025, ETH/BTC is resting near a multi-year support zone. Market participants are watching closely to see whether this zone can hold and initiate an altcoin rebound. If supported, it could mark a key turning point in Ethereum price performance compared to Bitcoin.

However, downside risks remain. A decline in Bitcoin could put pressure on Ethereum price action. ETH has shown sensitivity to Bitcoin’s market direction in previous cycles. Without a confirmed breakout or higher low formation, traders remain cautious about calling a full reversal.

ETH Futures Open Interest Hits Record as Caution Lingers

On March 21, Ether futures open interest reached a record high of 10.23 million ETH, according to data from CoinGlass. This figure represents a 15% increase over two weeks, signaling growing participation in derivative markets.

Despite the rise in open interest, the futures premium dropped below 4%, down from 5% two weeks prior. This lower premium suggests subdued bullish sentiment, as traders are not aggressively pursuing leveraged long positions. Binance, Gate.io, and Bitget accounted for over half of the futures market, while CME captured 9%.

The increased leverage does not automatically indicate upward price movement. Open interest simply reflects matched positions between buyers and sellers. The absence of a strong premium points to a neutral stance from investors regarding the altcoin price trajectory.

Ethereum Network Fees Fall as On-Chain Activity Slows

However, Ethereum network fees fell by 50% over the past seven days, according to IntoTheBlock. The reduction signals a decline in user activity and overall demand on the Ethereum mainnet. Total revenue for Ethereum’s base layer dropped to $605,000 as of March 17, compared to $2.5 million just two weeks earlier.

Lower fees are partly due to the growing use of Layer 2 solutions, which move transactions off the mainnet to improve scalability. However, the shift has also reduced transaction volume on the core network. Users and protocols are increasingly exploring alternative chains such as Solana and Avalanche.

This slowdown in network usage presents challenges for Ethereum price support. The downturn in activity may contribute to hesitancy around the altcoin’s near-term outlook. However, Ethereum whales have started to accumulate again as one of them bought nearly $270 million worth of ETH. This goes hand in hand with the increase in the daily active addresses by 26%, which may signal a reversal of the Ethereum price chart.

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Ronny Mugendi

Ronny Mugendi is a seasoned crypto journalist with four years of professional experience, having contributed significantly to various media outlets on cryptocurrency trends and technologies. With over 4000 published articles across various media outlets, he aims to inform, educate and introduce more people to the Blockchain and DeFi world. Outside of his journalism career, Ronny enjoys the thrill of bike riding, exploring new trails and landscapes.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.