In 2025, Ethereum (ETH) achieved a new record but soon faced a correction, causing its price to dip below $4200. Let's explore further.
Ethereum's Record Surge
Ethereum surpassed its previous all-time high set in 2021, reaching $4900. This surge drew attention from traders, however, the market was also preparing for a potential correction.
Market Correction Impact
The recent correction in the cryptocurrency market has negatively impacted Ethereum, which has fallen to $4200. This situation has resulted in a significant drop in ETH trading volume.
Matrixport's Analysis
Analysts from Matrixport noted that the declining ETH trading volume, which fell from $122 billion to $41 billion, may increase pressure on long positions. Here are their main findings:
- Open interest in futures has barely changed despite the drop in spot trading volume. - Some investors may be forced to close their long positions, which could negatively impact the price. - Matrixport has deposited $43.7 million worth of ETH into Binance.
Despite reaching a record, Ethereum is facing a market correction. The impact on trading volumes may lead to changes in traders' strategies.
