Ether has been in a significant downtrend since December 2024, having dropped more than 53% from its peak above $4,100.
Ether has been in a significant downtrend since December 2024, having dropped more than 53% from its peak above $4,100. Currently priced at $1,943, the cryptocurrency’s struggles are tied to global uncertainties, particularly concerns about U.S. import tariffs and the ongoing lack of new developments on the Ethereum network. Analysts from Bitfinex point out that high operating fees are discouraging builders from launching new projects, a key factor in Ether's weak performance. The macroeconomic concerns, including fears of a potential trade war, have also contributed to a broader sell-off in risk assets.
The recent market-wide correction, which has affected various cryptocurrencies, has seen Ether facing continued selling pressure. As a result, its price has struggled to rebound despite the overall crypto market being in what some analysts believe could be a bull market cycle. However, concerns about an early bear market cycle are also surfacing, with some analysts predicting Ether’s price could further correct down to around $1,800. This price level is considered a critical support zone, and if Ether continues to drop, this could serve as an important threshold to watch.
In addition to these broader market concerns, Ether's price is further weighed down by outflows from Ether ETFs. For four consecutive weeks, U.S. spot Ether ETFs have experienced net negative outflows. Last week alone, these outflows totaled more than $119 million, as per Sosovalue data. This trend has only added pressure on Ether’s price, preventing any significant recovery. The ongoing outflows have pushed Ether below the $2,200 trendline, a level that had previously supported its price during its bull market recovery since 2022.
Despite these challenges, there remains some institutional optimism for Ether. Market participants like VanEck have forecasted a price target of $6,000 for Ether by 2025, along with a predicted $180,000 price for Bitcoin. These predictions, however, contrast with the current reality of Ether’s price struggles, where investor sentiment is heavily influenced by macroeconomic factors and ETF outflows.
Ether's current price struggles highlight the cryptocurrency’s broader challenges in a volatile market environment. While some remain optimistic about its future, its performance in the short term will likely continue to be impacted by a combination of global economic concerns, lack of network activity, and ongoing ETF outflows.
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