Ethereum (ETH) is struggling near $1,580, marked by a 46% drop over 12 months and a 60% decline in ETF assets. Despite the downturn, Tron founder Justin Sun remains committed to holding his ETH investments. Upcoming network upgrades could improve transaction efficiency and investor engagement, but mixed market signals indicate potential for further declines.
Ethereum (ETH) is currently trading around $1,580, reflecting a significant 46% decline over the past 12 months. The total net assets in ETH exchange-traded funds (ETFs) have sharply decreased by over 60%, falling from $14.28 billion peak to just $5.25 billion. Notably, average ETH transaction fees have dropped to $0.168, the lowest since 2020, as market sentiment remains grim.
Justin Sun, the founder of Tron, publicly stated he intends to maintain his ETH holdings amid the current price downturn, showcasing continued confidence despite external pressures. Sun has previously expanded his investments by transferring substantial amounts to his HTX exchange but retains a sizeable amount in various staking protocols. Speculation indicates he holds approximately 665,000 ETH valued at nearly $1 billion, a stark contrast to earlier valuations of around $2.5 billion.
Conversely, other significant investors are reacting differently. For instance, Galaxy Digital has recently transferred 49,681 ETH worth about $79.37 million to major exchanges like Binance and Coinbase, highlighting their strategy in response to the market conditions. Meanwhile, network activity is diminishing, as reflected in reduced transaction fees and lower smart contract usage, with fees plummeting due to decreased blockchain engagement amid economic uncertainties.
The upcoming Pectra upgrade on May 7, 2025, presents potential for revitalisation. It aims to tackle current transaction fee and congestion challenges while enhancing engagement with institutional investors through increased staking capacity. This upgrade’s first stage will incorporate layer-2 capacity, improving transaction processing.
Technically, Ethereum exhibits mixed signals; the Relative Strength Index indicates a nearing oversold state, while the Stochastic Oscillator has remained in the oversold region since late February. A break above the $1,904 resistance can open possibilities for a resurgence towards $2,000. However, bearish factors persist, with potential testing of the $1,526 level if the downward trend continues unchecked.
