The price of Ethereum (ETH) has significantly decreased amid trade wars characterized by macroeconomic uncertainty.
Low Demand for Ethereum
The demand for Ethereum, especially from institutional investors, has remained significantly low in recent months. For example, the U.S. spot Ether ETF recorded a net cash outflow of about $403 million. According to data from Santiment, Ethereum whales with account balances between 100k and 1 million have sold around 760 ETH in the past two weeks.
What Next?
Ethereum's price has been consistently closing below the 200-week Simple Moving Average (SMA), heightening bearish sentiment. From a technical analysis perspective, the ETH/USD price has been retesting a crucial support level above $1,800, which could yield renewed bullish sentiment. Meanwhile, the Relative Strength Index (RSI) remains at oversold levels, indicating the likelihood of a V-shaped reversal.
Despite current challenges, the crypto market is expected to perform better in the second quarter of 2025 following a poor performance in the first quarter.
