Ethereum Closes Q4 2025 with a Notable -28.28% Loss: What's Next for the Crypto Giant?

Ethereum has wrapped up the fourth worst fourth quarter (Q4) in its history, posting a notable -28.28% return. This decline signals a bearish market trend for the popular cryptocurrency, raising questions about its future performance as year-end bullish patterns fail to materialize.

Key Takeaways

Ethereum reported a -28.28% decline in Q4 2025, marking its fourth worst fourth quarter ever.
The cryptocurrency experienced a downward trend from September to December, ending the year on a low note.
Bitcoin also faced challenges, with a Q4 return of -23.07%.
The anticipated "Santa rally" in the crypto market was effectively absent in 2025.
Looking ahead, Ethereum developers are planning significant upgrades, with a focus on building a more efficient network.

Ethereum Posts Fourth Worst Q4 Ever With -28.28% Return, What's Next?

Main Content

Ethereum has just concluded what is considered the fourth worst fourth quarter (Q4) in its history. Data from CoinGlass, shared by Wu Blockchain, reveals that Ethereum recorded a loss of 28.28% in Q4 2025. This disappointing performance highlights a notable decline from September through December, culminating in a bearish finish for the year.

By the end of December, Ethereum's value dropped by 0.84%, reflecting four consecutive months of losses. The expected year-end rally typically sought by traders failed to materialize, resulting in a challenging Q4 characterized by low liquidity and a decreasing risk appetite among investors.

Looking at the broader cryptocurrency market, Bitcoin also struggled during this quarter, achieving a return of -23.07%, which is significantly lower than its historical average return of 77.07% and a median of 47.73%. This marks Bitcoin's second worst Q4 on record, only trailing behind the abysmal performance of Q4 2018, which saw a -42.16% return.

Efforts to initiate a "Santa rally" were thwarted as any attempts to regain significant price levels were promptly met with sell-offs, further dragging Ethereum lower. According to data from Glassnode, exchange-traded fund (ETF) flows indicated a lack of renewed interest as the year drew to a close, with the 30-day simple moving average (SMA) of net flows for both Bitcoin and Ethereum ETFs remaining negative. Historically, strong late-year inflows have been crucial for establishing positive momentum at the start of the following year.

At the close of 2025, Ethereum's momentum had diminished, especially after hitting an all-time high of nearly $5,000 in August. However, there are plans on the horizon. Ethereum developers have confirmed the schedule for the network's second major upgrade, called Hegota, which is set to follow the upcoming Glamsterdam upgrade expected in the first half of 2026.

Ethereum's co-founder, Vitalik Buterin, expressed that the platform achieved several key milestones in 2025, including enhancements in gas limits, an increase in node software quality, and significant progress in zero-knowledge Ethereum Virtual Machines (zkEVMs). However, he emphasized that more work is needed to fulfill Ethereum's vision of becoming a central component of a more open and free internet.

As Ethereum looks to the future, it remains crucial for the community and developers alike to address the challenges ahead and ensure the network evolves to meet its ambitious goals.