- Ethereum’s market cap dropped 36% in seven weeks, pushing profitable tokens to a four-month low.
- Retail traders are selling ETH amid underperformance, while institutional futures interest rises 18% since January.
Ethereum’s market capitalization has fallen 36% over seven weeks, reaching levels last seen in late 2024, according to data from Santiment. The drop has reduced the percentage of ETH tokens in profitable positions to a four-month low, with only 54% of addresses currently holding gains.
Retail traders have accelerated selling activity, reflecting frustration over Ethereum’s underperformance compared to Bitcoin and Solana.
Market sentiment mirrors this decline
Social media analysis shows a 40% increase in bearish Ethereum discussions since January 2025. Despite Bitcoin trading near $97,000 and Solana at $200, traders describe the atmosphere as unusually muted. “This feels like a graveyard,” noted the analyst, referencing past crises like the Terra and FTX collapses. During those events, retail investors actively bought discounted assets, but current participation remains sparse.
Continuing with previous reports on ETHNews, Ethereum’s price hovers near $2,500, a support level that could dictate its next move. Analyst Ali Martinez suggests holding above this threshold might enable a rally toward $4,000 or higher.
Conversely, a breakdown could trigger a slide to $1,700. The asset’s Relative Strength Index (RSI) sits at 38, indicating neither oversold nor overbought conditions, leaving room for volatility.
Historical patterns offer context
Ethereum rebounded 82% in the three months following the FTX collapse in late 2022. Similar recoveries occurred after the COVID-19 market crash in March 2020. However, current macroeconomic factors differ.
Geopolitical tensions and regulatory uncertainty have dampened speculative activity, with fewer investors capitalizing on lower prices.
While retail traders exit, derivatives data shows open interest in Ethereum futures rising 18% since mid-January.
This suggests professional traders are positioning for volatility, though their strategies remain unclear.
The $2,500 level now serves as a litmus test
A sustained hold above it could attract sidelined capital, while a breach may deepen losses. For Ethereum, the path forward hinges on balancing technical thresholds with shifting investor psychology—a challenge magnified by its evolving role in decentralized finance and smart contracts.
ETHnews traders have noted the unusually quiet market mood, comparing the current situation to previous crashes but observing a lack of excitement among traders. He questions why the market feels like a “graveyard” despite Ethereum’s price being at levels where there was significant buying interest in the past.
