Ethereum Faces Another Setback: Key Indicators to Consider
Ethereum struggles below $3,000, signaling potential further declines as investors react.
2025 has proven to be a tumultuous year for Ethereum, the second-largest cryptocurrency. Initially starting strong alongside a recovering market, Ethereum’s value dropped below $1,500 in April due to market reactions to tariffs imposed by President Trump. However, it experienced a significant rally afterward, nearly reaching its all-time high by almost touching the $5,000 mark.
Since then, the trend reversed sharply, and it plummeted by approximately 50%, hitting a low of $2,600 by late November. Although some fluctuations have pushed Ethereum above $3,000 temporarily, it has struggled to maintain that price point and currently hovers just beneath it, raising concerns about future performance.
Increased Selling Pressure
Recent data from Ali Martinez indicates that Ethereum whales offloaded an astonishing $360 million worth of ETH within just a week, with total holdings decreasing from over 5.73 million tokens to 5.61 million during the early October surge.
“$360 million in Ethereum [$ETH] sold by whales in just one week! pic.twitter.com/wUNcGoJi5r”
— Ali Charts (@alicharts) December 20, 2025
Adding to the alarming trends, data from Farside suggests that investors using spot Ethereum ETFs to gain exposure to the asset have faced losses, with these funds experiencing setbacks for seven consecutive trading days since December 11, culminating in a loss of nearly $650 million in just the past week. Total net inflows into ETH-backed ETFs, which exceeded $15 billion in early October, have now dwindled to less than $12.5 billion.
A Shifting Landscape
Conversely, on-chain data showcases a change in behavior among retail investors, indicating a resurgence. Reports from Santiment reveal the creation of over 190,000 new ETH addresses daily this December—significantly higher than levels from July when interest in Ethereum surged.
Furthermore, analysts like Merlijn The Trader are cautiously optimistic, suggesting Ethereum may be on the brink of a breakout akin to the parabolic rally witnessed from 2015 to 2018. He notes:
“This Ethereum Move Will Catch Everyone Off Guard.”
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