Ethereum’s price has taken a significant hit this year, hovering near its lowest level since September 2024. As of Sunday, Ethereum (ETH) was trading above $2,200, marking a 45% decline from its peak in November 2024. Several key charts provide insights into why Ethereum’s price has plummeted and what may come next.
1. Ethereum’s Triple-Top Formation Signals Bearish Outlook
A technical pattern known as a triple-top formation has emerged in Ethereum’s weekly chart, showing strong resistance around the $4,000 level in 2024. This bearish pattern typically indicates a potential downward trend. ETH has now dropped to $2,150, the pattern’s neckline. A decisive break below this support level could lead to further downside, potentially pushing the price toward $1,176—a 45% drop from the current level.
2. Spot Ethereum ETFs Are Experiencing Outflows
Ethereum’s price decline is also tied to outflows from spot ETH ETFs. While these funds have attracted $2.82 billion in total inflows, this figure pales in comparison to Bitcoin’s massive $38 billion in ETF inflows. The lack of strong investor demand for ETH ETFs suggests lower institutional confidence compared to Bitcoin.
3. Ethereum Staking Outflows Are Rising
Ethereum’s price drop has coincided with rising staking outflows. Data from StakingRewards indicates that Ethereum’s staking market cap has declined by 20% in the last seven days, now standing at $74.5 billion.
A key example is Lido, the largest liquid staking platform, which has seen its total value locked (TVL) drop from 10.1 million ETH to 9.41 million ETH. This decline in staked ETH suggests that investors are unstaking their assets, potentially in anticipation of lower prices.
4. Rising Exchange Balances Indicate Selling Pressure
Another bearish signal for Ethereum is the increasing ETH balances on exchanges. Typically, when investors move their assets from wallets to exchanges, it indicates intent to sell. Data from CoinGlass shows that ETH balances on exchanges have risen to 15.40 million ETH, marking the highest level since February 1, 2025. This surge in exchange reserves suggests that selling pressure is intensifying.
5. Ethereum Fees Are Dropping as Competition Grows
Ethereum’s declining network fees signal that activity on the network is slowing. Ethereum has generated $198 million in fees so far in 2025 but has been overtaken by competitors like Uniswap, Circle, Solana, Jito, and Tron. As layer-2 networks such as Arbitrum and Base struggle to gain traction, Ethereum’s dominance in the DEX sector is eroding.
Ethereum Faces Strong Headwinds
Ethereum’s price crash is driven by a combination of technical patterns, rising selling pressure, ETF outflows, staking withdrawals, and declining network activity. Additionally, Ethereum whales have been offloading their holdings, further exacerbating the downward momentum.
While a recovery remains possible, breaking below key support levels could signal further declines. Investors will be watching closely to see if ETH can stabilize or if market conditions push it toward new lows.
