Ethereum's value has decreased by 50% since reaching a peak of $3,668 in January 2025. Market sentiment has turned negative as on-chain activity has reduced substantially.
Ethereum Price Decline
Ethereum's significant price drop is linked to weakening fundamentals and decreased demand. According to Matrixport, on-chain activity has dwindled considerably. Ethereum's current price is nearing levels reminiscent of the FTX collapse in 2022. The pending payouts to FTX creditors on May 30 further add to market unease.
Market Impact
A significant shift is expected as derivatives markets are now pricing in a potential 10% price movement for Ethereum over the coming week. This indicates heightened market volatility and anticipation of further risk events. Market reactions remain subdued, as no official statements from industry leaders or regulators have addressed Ethereum's current price movements directly. However, the broader bearish sentiment is clear among crypto traders and investors.
Analysts' Warnings
Analysts warn of possible market turbulence as Ethereum's price nears 2022 levels. CoinMarketCap data indicates Ethereum (ETH) currently trades at $1,797.81, marking significant losses over recent months. The cryptocurrency has decreased by 2.68% over the past 24 hours, 14.03% over the past 7 days, and 46.75% over the past 90 days. The total market capitalization is $216.92 billion with a circulating supply of approximately 120.66 million ETH.
The steep decline in Ethereum's price marks a critical point for the crypto market as investors remain on edge in anticipation of further developments. The observed reduction in activity and anticipated volatility suggests potential for significant market shifts.
