Ethereum has been in a severe downward trajectory, making it one of the poorest-performing major cryptocurrencies in recent months. With a sharp decline continuing over three consecutive weeks, ETH has now reached levels last seen in March 2023, effectively erasing more than half of the value it had at its peak in November.
Several key factors have contributed to Ethereum’s ongoing slump. First, investor sentiment around Ethereum-focused spot ETFs has grown negative, reflecting persistent outflows. For six straight weeks now, these funds have reported net withdrawals, reducing their total net inflow to just about $2.3 billion. This figure stands in stark contrast to the $35 billion net inflows attracted by comparable Bitcoin ETFs, suggesting clear investor preference for BTC over ETH.
Additionally, Ethereum’s position as the top revenue-generating blockchain network has diminished considerably. Once a leader in sectors such as decentralized finance (DeFi), NFT trading, blockchain gaming, stablecoins, and asset tokenization, Ethereum is now lagging significantly behind other blockchains. Tether has surpassed Ethereum with total generated fees reaching $1.3 billion this year, compared to Ethereum’s modest $227 million. Tron and Solana also easily exceed Ethereum’s revenue, bringing in $880 million and $376 million respectively, largely powered by their robust stablecoin activity. Platforms such as Uniswap and Jito have further intensified Ethereum’s struggle by attracting a larger share of transaction fees.
Another concerning trend is the noticeable decline in Ethereum’s developer engagement metrics. Recent on-chain data shows developers increasingly migrating towards other flourishing ecosystems—for example Solana, Berachain, and Sonic. Ethereum’s Layer-2 scaling solutions, such as Base, Optimism, and Arbitrum, have also become popular destinations, drawing developers away due to their faster transaction speeds and significantly lower costs.
From a technical analysis viewpoint, Ethereum’s price chart paints an equally troubling picture. A bearish triple-top pattern has recently unfolded on Ethereum’s weekly chart, signaling strong downward momentum. Forming three defined peaks near $4,062 and a confirmed break below the key support neckline around $2,132, the price action has affirmed a bearish outlook. Furthermore, Ethereum’s current levels have breached critical long-term moving averages—including both the 50-week and 100-week metrics—which typically signal intensified selling pressure. Analysts expect the $1,000 mark might be ETH’s next significant downside target should the bearish outlook persist.
As Ethereum investors consider these factors, a stark financial reality emerges: an investment of $10,000 made at Ethereum’s high last November has now dwindled to roughly $3,650, emphasizing the drastic scale of value erosion in recent months. Given current fundamental weaknesses accompanied by negative technical trading signals, market observers expect that Ethereum may face continuing pressure for an extended period.
