Ether is struggling to reverse a near three-month downtrend as macroeconomic concerns and continued selling pressure from US Ether exchange-traded funds (ETFs) weigh on investor sentiment.
Ether (ETH) has fallen by more than 53% since it began its downtrend on Dec. 16, 2024, after it had peaked above $4,100, TradingView data shows.
The downtrend has been fueled by global uncertainty around US import tariffs triggering trade war concerns and a lack of builder activity on the Ethereum network, according to Bitfinex analysts.
ETH/USD, 1-day chart, downtrend. Source: Cointelegraph/ TradingView
“A lack of new projects or builders moving to ETH, primarily due to high operating fees, is likely the principal reason behind the lackluster performance of ETH. […] We believe that for ETH, $1,800 will be a strong level to watch,” the analysts told Cointelegraph.
“However, the current sell-off is not being seen solely in ETH, we have seen a marketwide correction as fears over the impact of tariffs hit all risk assets,” they added.
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Crypto investors are also wary of an early bear market cycle that could break from the traditional four-year crypto market pattern.
Bitcoin (BTC) is at risk of falling to $70,000 as cryptocurrencies and global financial markets undergo a “macro correction” while remaining in a bull market cycle, said Aurelie Barthere, principal research analyst at blockchain analytics firm Nansen.
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Ether price limited by ETF outflows
Adding to Ethereum’s challenges, continued outflows from Ether ETFs are limiting the asset’s price recovery, according to Stella Zlatareva, dispatch editor at digital asset investment platform Nexo:
“ETH’s 20% decline last week pushed its price below the key $2,200 trendline that had supported its bull market recovery since 2022. The modest price action may be attributed, as with Bitcoin, to ETFs.”
US spot Ether ETFs have entered a fourth consecutive week of net negative outflows, after seeing over $119 million worth of cumulative outflows during the previous week, Sosovalue data shows.
Total spot Ether ETF net inflow. Source: Sosovalue
Still, some notable institutional crypto market participants remain optimistic about Ether’s price for 2025. VanEck predicted a $6,000 cycle top for Ether’s price and a $180,000 Bitcoin price during 2025.
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