Ethereum Falls 42% from All-Time High: What Lies Ahead for ETH Prices?

Ethereum Falls 42% from All-Time High

Ether has seen a significant decline of 42% from its highest recorded price of $4,950, raising questions among traders about where the price of this altcoin will stabilize.

Key Takeaways:

Ethereum could fall to $2,100 if it fails to maintain support at $2,800.
Continued restrictions on Ether ETFs and reduced treasury purchases increase risks for buyers.

Price Projection: Potential for a 25% Decline in ETH

Recent data from Cointelegraph Markets Pro and TradingView indicates that the ETH/USD trading pair has dropped below the $3,000 mark. Analyst and trader Daan Crypto Trades has commented on the situation, noting that although current trends differ from what ETH investors expected, the overall "market structure and the Ethereum ecosystem have matured."

The accompanying chart highlights that should ETH lose its support level at $2,800, it may descend to the next significant support zone around $2,100.

ETH/USD weekly chart. Source: Daan Crypto Trades

According to Glassnode data, the next key support below $2,800 is approximately at $2,100, a price point where around 2.1 million ETH were previously acquired.

Related: Ethereum Efficiency Set to Improve in January with Increased Gas Limit to 80M

While Polymarket participants estimate only an 11% chance of ETH dropping to the $2,000-$2,200 range before the end of 2025, there is an 83% likelihood of the price revisiting $2,500 and a 59% chance of hitting $2,000 in 2026.

Ether’s price targets before Dec. 31, 2026. Source: Polymarket

The lowest price for Ether in 2025 was $1,380, reached in April, with the last recorded price at $2,100 occurring on May 9. Compared to previous bear markets, this 42% drop from all-time highs is relatively minor, as past cycles have seen declines of about 80-90%.

ETH price drawdown from all-time high. Source: Glassnode

The Shift in Investor Sentiment Regarding Ethereum ETFs

There has been a noticeable decline in institutional interest for US-based spot Ethereum exchange-traded funds (ETFs), as indicated by data from Farside Investors. These products have experienced outflows for five straight days, amounting to $533.1 million, with total assets under management now standing at $17.34 billion.

“US-based Ethereum ETFs are witnessing persistent capital outflows,” stated CryptoQuant analyst IT Tech in a recent update on X.

Spot Ether ETFs flows table. Source: Farside Investors

Moreover, data from Capriole Investments reveals that daily purchases by Ethereum treasury companies have sharply decreased from a peak of 78,010 ETH on August 23 to only 12,095 ETH per day.

Ethereum: Daily rate of treasury buying. Source: Capriole Investments

Despite the fact that BitMine is ramping up its Ether purchases, various on-chain and technical indicators for ETH suggest a bearish trend, indicating that further challenges may be ahead.