Ethereum Price Decline and Future Prospects Amid ETF Pressure

Ethereum’s price is currently below $1,600 at $1,580, reflecting a 46% annual decline. Institutional interest has diminished, leading to a 60% decrease in Ethereum ETFs’ net assets. Justin Sun maintains his ETH holdings, while Galaxy Digital’s recent coin movements indicate selling pressure. The upcoming Pectra upgrade is seen as a potential catalyst for network activity and investor interest.

Ethereum’s price has fallen below $1,600, currently trading around $1,580, which signifies a 46% decline over the past year. This downturn, recognised as the longest such trend since 2017, corresponds with significant selling pressure and diminishing institutional interest. Total net assets in Ethereum ETFs have decreased by over 60%, from a peak of $14.28 billion to just $5.25 billion since December, highlighting an exodus of funds worth $909 million since the implementation of Trump’s tariffs.

In the face of this market decline, Tron founder Justin Sun has declared an intention to retain the approximately 665,000 ETH valued at nearly $1 billion that his firm currently holds. He stated that despite Ethereum’s low price, there is no plan to liquidate these assets. Sun expressed a commitment to strengthen cooperation with Ethereum developers, aiming to bolster the industry collaboratively and maintain confidence amid market volatility, despite a substantial reduction from previous highs of around $2.5 billion in ETH value.

Galaxy Digital has also been active during this downturn, depositing around 49,681 ETH, equivalent to $79.37 million, to central exchanges Binance and Coinbase, which raises suspicions regarding possible selling from institutional investors. This trend is compounded by a recent $23.10 million in futures liquidations, with a significant portion stemming from closed long positions. Technical indicators suggest ETH may break down if it dips below its recent support level of $1,580, though a rebound could occur if it successfully scales back to the $2,000 mark.

Amid these developments, the upcoming Pectra upgrade on May 7, 2025, is anticipated to enhance Ethereum’s efficiency by expanding transaction capacity and increasing staking limits. This major update aims to improve networks while addressing issues of high transaction fees, with current fees reported at approximately $0.168 per transaction. Lower fees imply reduced blockchain usage, yet they may attract more participants following network upgrades.

Recent efforts from ETH ETF issuers, such as Fidelity and Grayscale, to secure SEC approval for staking within their ETF products could offer investors rewards and counterbalance the current market sell-off pressure. Overall, while Ethereum faces immediate challenges, the long-term outlook remains promising, contingent upon ongoing development and upgrades designed to solidify its pivotal role in decentralised finance and blockchain applications.