Ether is struggling to reverse a close to three-month downtrend as macroeconomic considerations and continued promoting strain from US Ether exchange-traded funds (ETFs) weigh on investor sentiment.
Ether (ETH) has fallen by greater than 53% because it started its downtrend on Dec. 16, 2024, when it peaked above $4,100, TradingView knowledge exhibits.
The downtrend has been fueled by world uncertainty round US import tariffs triggering trade war concerns and a scarcity of builder exercise on the Ethereum community, in line with Bifinex 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 advised 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 buyers are additionally cautious of an early bear market cycle that might break from the normal four-year crypto market sample.
Bitcoin (BTC) is at risk of falling to $70,000 as cryptocurrencies and world monetary markets endure a “macro correction” whereas remaining in a bull market cycle, stated Aurelie Barthere, principal analysis analyst at blockchain analytics agency Nansen.
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Ether value restricted by ETF outflows
Adding to Ethereum’s challenges, continued outflows from Ether ETFs are limiting the asset’s value restoration, in line with Stella Zlatareva, dispatch editor at digital asset funding 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 their fourth week of consecutive web unfavorable outflows, after seeing over $119 million price of cumulative outflows in the course of the earlier week, Sosovalue knowledge exhibits.
Total spot Ether ETF web influx. Source: Sosovalue
Still, some notable institutional crypto market individuals stay optimistic about Ether’s value for 2025. VanEck predicted a $6,000 cycle prime for Ether’s value and a $180,000 Bitcoin value throughout 2025.
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