Ethereum’s recent price decline sees it trading at $1,580, with ETFs experiencing over a 60% drop in net assets to $5.25 billion. Tron founder Justin Sun pledges to retain ETH holdings amid market pressures. Institutional outflows and significant liquidations continue to pressure ETH, with technical indicators suggesting a prolonged downtrend. SEC ETF approval could impact future selling pressure and yields.
Ethereum has recently been trading at approximately $1,580, showing a significant decline in its spot Ether exchange-traded funds (ETFs), which have experienced over a 60% drop in total net assets. Recent data indicates that net assets fell from an all-time high of $14.28 billion in December to about $5.25 billion, reflecting a broader institutional sentiment of risk aversion, particularly following substantial outflows of $909 million since the introduction of recent tariffs.
In a recent statement, Tron founder Justin Sun committed to not selling his Ethereum (ETH) holdings despite the prevailing downtrend in ETH prices. Sun expressed confidence in continued collaboration with Ethereum developers and suggested that the current price levels are seen as an opportunity rather than a reason to sell. His ETH investments reportedly include a significant balance across multiple staking protocols.
In recent activity from Galaxy Digital, 49,681 ETH, valued at approximately $79.37 million, were deposited into Binance and Coinbase within five days. This market movement coincided with heightened concern and selling amongst large ETH investors, known as whales, as they reacted to adverse market conditions attributed to the tariff impacts. _
Technical analysis indicates that Ethereum has been on an extended downward trend since mid-December, losing ground within a key descending channel. Current indicators such as the Relative Strength Index (RSI) are near oversold territory, while the Moving Average Convergence Divergence (MACD) reflects a decrease in the strength of bearish momentum. A break below the channel’s lower boundary could catalyse further price declines, whereas reclaiming the $2,000 level could signal a potential bullish trend reversal.
Investors are closely monitoring SEC developments, as several ETF issuers are seeking approval to allow staking within their ETH ETFs, which could yield approximately 3% and potentially alleviate selling pressures. However, the outlook remains cautious as ongoing liquidations in ETH futures reached $23.10 million in the last 24 hours, indicating considerable market volatility.
Legal proceedings, such as the SEC’s case against Ripple, filing delays, and broader market reactions to policies and tariffs, are increasingly affecting price dynamics in cryptocurrencies. Investors are advised to conduct thorough research before making any investment decisions, considering the high risks associated with the crypto market.
