Ether risks correction to $1.8K as ETF outflows, tariff fears continue

Ether is struggling to reverse a near three-month downtrend as macroeconomic concerns and continued selling pressure from US Ether exchange-traded funds (ETFs) weigh on investor sentiment.

Ether (ETH) has fallen by more than 53% since it began its downtrend on Dec. 16, 2024, after it had peaked above $4,100, TradingView data shows.

The downtrend has been fueled by global uncertainty around US import tariffs triggering trade war concerns and a lack of builder activity on the Ethereum network, according to Bitfinex analysts.

ETH/USD, 1-day chart, downtrend. Source: Cointelegraph/ TradingView 

“A lack of new projects or builders moving to ETH, primarily due to high operating fees, is likely the principal reason behind the lackluster performance of ETH. [...] We believe that for ETH, $1,800 will be a strong level to watch,” the analysts told Cointelegraph.

“However, the current sell-off is not being seen solely in ETH, we have seen a marketwide correction as fears over the impact of tariffs hit all risk assets,” they added.

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Crypto investors are also wary of an early bear market cycle that could break from the traditional four-year crypto market pattern.

Bitcoin (BTC) is at risk of falling to $70,000 as cryptocurrencies and global financial markets undergo a “macro correction” while remaining in a bull market cycle, said Aurelie Barthere, principal research analyst at blockchain analytics firm Nansen.

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Adding to Ethereum’s challenges, continued outflows from Ether ETFs are limiting the asset’s price recovery, according to Stella Zlatareva, dispatch editor at digital asset investment platform Nexo:

US spot Ether ETFs have entered a fourth consecutive week of net negative outflows, after seeing over $119 million worth of cumulative outflows during the previous week, Sosovalue data shows.

Total spot Ether ETF net inflow. Source: Sosovalue

Still, some notable institutional crypto market participants remain optimistic about Ether’s price for 2025. VanEck predicted a $6,000 cycle top for Ether’s price and a $180,000 Bitcoin price during 2025.

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