Ethereum investors may face a challenging year, with some market signals predicting that prices could weaken significantly before a substantial recovery occurs. Currently trading around $1,810, Ethereum has been unable to break decisively above the critical resistance of $2,000, raising concerns among market participants.
According to data from Polymarket, investors are showing bearish sentiment toward Ethereum, with many expecting the cryptocurrency’s price to plunge as low as $1,000 in 2025. The survey reveals that the probability of a drop to this lower price level stands at approximately 39%, representing nearly a 45% reduction from its current price. Conversely, optimism for Ethereum to reach $4,000 is considerably lower, with the probability currently pegged at 20%.
This cautious outlook appears driven by weakening fundamentals affecting Ethereum. Interest in Ethereum spot ETFs has softened substantially, having recorded cumulative inflows amounting to just $2.4 billion so far. This pales in comparison to Bitcoin ETFs, which boast a significantly higher influx at around $38 billion.
Investor apprehension has also been amplified by recent asset sales from the Ethereum Foundation, perceived by some as an indication of reduced confidence in the asset’s near-term prospects. Additionally, Ethereum’s position in key sectors like decentralized finance (DeFi) and blockchain gaming continues to erode as competing blockchains—including Solana, Base, and Arbitrum—gain market share.
The situation has drawn the attention and critical remarks of industry figures such as Charles Hoskinson, founder of Cardano, who predicts significant challenges for Ethereum over the next decade, questioning its long-term viability.
Financial metrics also underscore Ethereum’s struggles. Its revenue generation over the current year—standing at approximately $245 million—is substantially lower compared to competitors like Lido, Uniswap, Tron, Solana, Circle, and Jito, which are outperforming Ethereum by considerable margins.
Technical analysis further supports a bearish scenario. Ethereum’s weekly price movements highlight a bearish triple-top formation that emerged across multiple highs near $4,010 during March, May, and November of last year. The critical neckline support level sits around $2,130, based on a recent low. Given this bearish chart pattern, an extended decline toward the $1,093 mark and potentially further down to the symbolic $1,000 range seems plausible. Should Ethereum manage a decisive climb back above the $2,130 neckline, however, this negative outlook could be invalidated, potentially paving the way for a more sustained upward trend.
