Ether has declined over 53% since December, with analysts warning of further losses amid trade war concerns and persistent ETF outflows. The cryptocurrency continues to struggle against macroeconomic pressures, including U.S. import tariffs and a lack of builder activity on the Ethereum network, leading to prolonged selling pressure.
TradingView data indicates that Ether’s downward trend began on Dec. 16, 2024, after peaking above $4,100. Analysts at Bitfinex attribute the decline to heightened global uncertainty surrounding tariffs and diminishing developer engagement due to high operational costs. They note that Ethereum’s sluggish performance is driven by limited new projects migrating to the network. With this in mind, they consider $1,800 a key level to monitor, suggesting that ETH’s prolonged weakness reflects broader market concerns rather than an isolated sell-off.
Market-wide apprehension over tariffs has impacted risk assets, triggering corrections beyond Ethereum. Crypto investors remain cautious about the possibility of an early bear market cycle, deviating from the traditional four-year cycle. Meanwhile, Bitcoin risks a drop to $70,000 amid what Nansen principal research analyst Aurelie Barthere describes as a “macro correction” affecting global financial markets.
Ether’s price recovery is also constrained by sustained outflows from Ether ETFs. According to Stella Zlatareva, dispatch editor at Nexo, ETH’s 20% decline last week pushed its price below the $2,200 trendline, which had previously supported its market rebound since 2022. U.S. spot Ether ETFs have now seen four consecutive weeks of net negative outflows, with over $119 million in cumulative withdrawals in the past week alone, per Sosovalue data.
Despite the negative sentiment, some institutional players maintain a bullish outlook for Ethereum. VanEck predicts a cycle peak of $6,000 for Ether and a $180,000 Bitcoin price during 2025. However, until investor confidence stabilizes, Ethereum faces continued uncertainty, with ETF outflows and macroeconomic pressures dictating its near-term trajectory.