Ether is finding it challenging to break a nearly three-month decline as macroeconomic anxieties and ongoing selling pressure from US Ether exchange-traded funds (ETFs) dampen investor enthusiasm.
Since the onset of its downtrend on December 16, 2024, Ether (ETH) has experienced a plunge of over 53%, having previously reached a peak above $4,100, according to available market data.
This downward trend has been exacerbated by global uncertainties surrounding US import tariffs, raising concerns about potential trade conflicts, coupled with sluggish builder activity on the Ethereum network, as analyzed by experts.
ETH/USD, 1-day chart, downtrend. Source: Cointelegraph/ TradingView
“The primary factor behind ETH’s lackluster performance appears to be the scarcity of new projects or builders moving to ETH, largely due to elevated operational costs. […] We believe that for ETH, $1,800 will serve as a crucial level to monitor,” the analysts noted.
“Nonetheless, this current sell-off isn’t unique to ETH; we are observing a broader market correction as apprehensions regarding the ramifications of tariffs affect all risk assets,” they added.
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Crypto investors are also cautious of a potential early bear market phase that could deviate from the traditional four-year cycle in the crypto market.
Bitcoin (BTC) is at risk of declining to $70,000 as both cryptocurrencies and global financial markets navigate a “macro correction” while remaining within a bull market phase, according to a principal research analyst at a blockchain analytics firm.
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Ether price constrained by ETF outflows
Compounding Ethereum’s difficulties, persistent outflows from Ether ETFs are inhibiting the asset’s price recovery, as noted by a dispatch editor at a digital asset investment platform:
“ETH’s 20% drop last week drove its price below the crucial $2,200 trendline that had been supporting its bull market recovery since 2022. The modest price movements can be attributed, similarly to Bitcoin, to ETFs.”
US spot Ether ETFs have now recorded four consecutive weeks of net negative outflows, following over $119 million in cumulative outflows during the prior week.
Total spot Ether ETF net inflow. Source: Sosovalue
Despite these challenges, some prominent institutional participants in the crypto market maintain a positive outlook for Ether’s price for 2025, with predictions indicating a cycle peak of $6,000 for Ether and a Bitcoin price of $180,000 during the same year.
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