The Ethereum (ETH) price has fallen sharply and reached the lowest level in 8 months. The second largest cryptocurrency lost significant value in a short period of time, while sentiment on the broader crypto market continues to deteriorate.
Investors are withdrawing en masse from risky assets such as Ethereum and Bitcoin (BTC), creating additional selling pressure.
Ethereum price under heavy pressure due to declining risk appetite
The Ethereum price fell by double digits on Thursday to around $ 1,900. That level was last seen in the spring of 2025. Over the past few months, ETH has structurally declined in value, with no apparent rebounds.
According to market experts, the cause is not due to one specific news event. It is mainly about a broader shift in risk perception on financial markets. Investors are becoming more cautious, liquidity is drying up and speculative investments are the first to be sold.
Ethereum is widely used in decentralized financial applications and as collateral in loan structures. A persistent fall in prices therefore increases the chance of forced liquidations, which can further increase selling pressure.
Bitcoin price drags altcoins down with it
Not only Ethereum is under pressure. The Bitcoin price also showed a sharp decline this month. BTC fell to the lowest level since the fall on Thursday, losing a significant part of its value in a short time.
Bitcoin’s decline has an impact on the rest of the market. Altcoins almost without exception follow the same direction. Crypto-related stock exchange funds and companies with large Bitcoin reserves are also taking a hit.
Analysts point out that cryptocurrencies are currently behaving like classic risky investments. In times of uncertainty, these positions are used to quickly release liquidity.
Fear of further tightening of liquidity
Additional unrest arose following political developments in the United States. Investors fear that monetary policy may become less supportive, which could lead to further tightening of financial conditions.
Research agency Kaiko speaks of a worrying combination of declining market value, increasing volatility and decreasing liquidity. It is precisely this mix that makes the market vulnerable to sudden and sharp price movements.
In addition, money is again flowing out of spot ETFs linked to Ethereum. It is now the third month in a row that these funds have shown net outflows, which further puts pressure on confidence in a short-term recovery.
Source: https://newsbit.nl/ethereum-koers-zakt-naar-laagste-niveau-in-8-maanden-wat-gaat-er-mis-op-de-cryptomarkt/
