Ether is facing challenges in reversing its nearly three-month-long downtrend as macroeconomic uncertainties and ongoing selling pressure from U.S.-based Ether exchange-traded funds (ETFs) continue to dampen investor confidence.
Ethereum’s Downward Trajectory
The price of Ether (ETH) has dropped by over 53% since its peak above $4,100 on December 16, 2024, according to TradingView data. This sustained decline is being attributed to concerns over U.S. import tariffs, fears of an escalating trade war, and reduced developer activity on the Ethereum network, as noted by analysts at Bitfinex.
“A lack of fresh projects or developers adopting Ethereum—mainly due to its high transaction fees—appears to be the primary factor behind its underwhelming performance,” analysts explained.
“We believe that $1,800 is a crucial level to monitor for ETH. However, this downturn isn’t exclusive to Ether, as the broader market has seen a correction amid concerns over the impact of tariffs on risk assets,” they added.
Additionally, some investors are wary of a possible shift away from the traditional four-year crypto cycle, suggesting that an early bear market phase may be unfolding.
Market-Wide Correction and ETF Pressure
Bitcoin (BTC) is also experiencing turbulence, with analysts cautioning that it could drop to $70,000 amid a broader macroeconomic correction. Aurelie Barthere, principal research analyst at blockchain analytics firm Nansen, noted that while the crypto market remains in a bull cycle, global financial uncertainties are influencing price action.
Ether’s price recovery is further constrained by persistent ETF outflows. Stella Zlatareva, dispatch editor at digital asset investment platform Nexo, commented that ETH’s 20% drop last week pushed it below the critical $2,200 trendline, which had supported its bullish movement since 2022.
According to Sosovalue data, U.S. spot Ether ETFs have now recorded their fourth consecutive week of net outflows, totaling over $119 million in the previous week.
Long-Term Optimism for Ethereum
Despite the current downturn, some institutional players remain confident about Ether’s potential in 2025. Investment firm VanEck maintains its forecast of a $6,000 price peak for Ether and anticipates Bitcoin reaching $180,000 within the same period.
While short-term pressures persist, long-term projections still suggest significant growth for Ethereum in the upcoming cycle.
For more news, find me on Twitter Giannis Andreou and subscribe to My channels Youtube and Rumble
What is your opinion on this particular topic? Leave us your comment below! We are always interested in your opinion!
