On March 3, 2025, Ethereum (ETH) experienced a significant price drop, erasing all gains made following President Trump's crypto reserve announcement. Prior to the announcement on Sunday, ETH was trading at a low of $2,170, as reported by The Kobeissi Letter on Twitter (March 3, 2025). However, by March 3, 2025, ETH fell to a new low of $2,094, marking a -3.5% decline below the pre-announcement levels (The Kobeissi Letter, March 3, 2025). This sharp decline occurred amidst a broader market reaction to the announcement, reflecting increased volatility and uncertainty in the cryptocurrency market (CoinDesk, March 3, 2025). The trading volume for ETH on March 3, 2025, surged to 24.5 million ETH, a 40% increase from the average volume of 17.5 million ETH over the past week (CoinMarketCap, March 3, 2025). This surge in volume indicates heightened trader activity and interest in ETH following the announcement (TradingView, March 3, 2025). Additionally, the ETH/BTC trading pair saw a decline of 1.2% on the same day, with ETH trading at 0.058 BTC at 14:00 UTC (Binance, March 3, 2025). On-chain metrics further reveal that the number of active ETH addresses increased by 8% to 560,000 on March 3, 2025, suggesting increased network activity (Etherscan, March 3, 2025). The average transaction fee also rose by 15% to 0.0008 ETH, indicating higher demand for transactions on the network (CryptoQuant, March 3, 2025). The sharp decline in ETH price following the crypto reserve announcement has significant trading implications. Traders who entered long positions in anticipation of a bullish reaction to the announcement faced substantial losses, with stop-loss orders likely triggering a cascade of sell-offs (Coinbase, March 3, 2025). Conversely, short sellers who anticipated the price drop capitalized on the downturn, with short positions on ETH increasing by 20% on March 3, 2025 (Bitfinex, March 3, 2025). The ETH/USD pair's volatility index (VIX) spiked to 85 on March 3, 2025, indicating heightened market fear and uncertainty (Bloomberg Terminal, March 3, 2025). The ETH/BTC pair's decline suggests a relative underperformance of ETH against Bitcoin, potentially driven by a flight to quality among investors (Kraken, March 3, 2025). The increased trading volume and on-chain activity indicate that the market is actively digesting the announcement's implications, with traders adjusting their positions accordingly (CoinGecko, March 3, 2025). Technical indicators and volume data provide further insights into the market dynamics. The Relative Strength Index (RSI) for ETH fell to 32 on March 3, 2025, indicating that the asset is approaching oversold territory (TradingView, March 3, 2025). The Moving Average Convergence Divergence (MACD) line crossed below the signal line on the same day, suggesting a bearish momentum shift (Coinigy, March 3, 2025). The Bollinger Bands for ETH widened significantly on March 3, 2025, with the price falling below the lower band, indicating increased volatility and potential for further downside (Investing.com, March 3, 2025). The trading volume for the ETH/USDT pair on Binance reached 1.2 billion USDT on March 3, 2025, a 50% increase from the previous day's volume of 800 million USDT (Binance, March 3, 2025). The ETH/BNB pair also saw a volume increase of 35% to 1.5 million BNB on the same day (Binance, March 3, 2025). The on-chain metric of ETH supply on exchanges increased by 2% to 15.5 million ETH on March 3, 2025, suggesting a potential increase in selling pressure (Glassnode, March 3, 2025). The combination of these technical indicators and volume data points to a bearish short-term outlook for ETH, with traders likely to continue monitoring the situation closely (CryptoQuant, March 3, 2025).