Ethereum (ETH) has been in a downward trend for almost three months and has trouble breaking out. Investor sentiment remains under pressure due to macro-economic uncertainty and persistent sales pressure from American Ether Exchange-Traded Funds (ETFS).
Since December 16, 2024, the rate of Ether has fallen by more than 53%, after it reached a peak above $ 4,100, according to data from TradingView.
According to analysts from Bitfinex, the decrease is mainly driven by global uncertainty about American import rates, which increases fear of a trade war. In addition, the Ethereum network will continue to suffer with a lack of new developers and projects, partly due to the high operational costs.
$ 1,800 becomes a crucial level for ether
Bitfinex analysts state that the high operational costs on Ethereum discourage developers, which puts pressure on ETH’s performance.
“A lack of new projects and builders that switch to Ethereum, mainly due to high costs, is probably the most important reason for the weak performance of ETH. We think $ 1,800 is an important level to keep an eye on, “ Thus the analysts towards Cointelegraph.
The current sales pressure is not only limited to ether. The entire cryptomarkt experiences a correction through concerns about the impact of US trade rates on risky assets.
Fear for an early bear market
Crypto investors fear that the market may end up in a bear market sooner than expected, which would deviate from the traditional four-year cycle.
According to Aurelie Barthere, main investigator at Blockchain analysis company Nansen, Bitcoin threatens to fall to $ 70,000 due to a broader “macroCorrect” that puts global financial markets under pressure. Despite this relapse, she believes that the cryptomarkt is still in a bullish cycle.
ETF outflows obstruct ether repair
In addition to macro-economic factors, the continuous outflow of capital from American ether ETFS contributes considerably to the price pressure on ETH.
According to Stella Zlatareva, editor at the Digital Investment Platform NEXO, the 20% ETH decrease last week ensured that the rate dropped below the crucial $ 2,200 trend line. Since 2022, this trend line had served as important support during the bullmarkt.
“The weak price movement of ETH can, just like with Bitcoin, largely attributed to the influence of ETFS,” aldus Zlatareva.
Data from Sosovalue shows that American spot ETFS is now in their fourth consecutive week of net outflows, with an outflow of more than $ 119 million in the past week.
Institutes remain optimistic about Ether in 2025
Despite the current correction, some large institutional players remain positive about the price development of Ether in the long term. Asset manager Vaneck predicts a possible peak of $ 6,000 for Ether in this cycle and a Bitcoin price of $ 180,000 in 2025.
Claim € 10 free today and do not pay trading costs over the first € 10,000!
Grab this unique opportunity with Newsbit and Bitvavo by creating an account now via the button below. Only deposit € 10 and receive € 10 free of charge. Moreover, you can act without costs for 7 days over your first € 10,000 in transactions. Start today and take advantage of the growing popularity of Crypto!
Make your account and claim € 10 for free.
Don’t miss this opportunity to take advantage of the growing popularity of Crypto!
Source: https://newsbit.nl/ethereum-koers-in-de-problemen-dreigt-eth-te-zakken-naar-1-800/
