The value of Ethereum (ETH) falls below $2,000 again, a loss of more than 5% overnight. Ethereum experienced a deeper collapse than Bitcoin (BTC), which fell to just $86,000.
The value of Ethereum (ETH) fell again, falling below $2,000 after a general market decline. The cryptocurrency did not achieve the hoped-for breakout and is trading at 0.022 bitcoins. As for fiat currencies, Ethereum traded at $1,917.21, close to a three-month low.
Investor sentiment towards Ethereum remains neutral, with open positions falling to $9.9 billion. Derivatives traders have accumulated liquidity at $2,040 and $2,100, but the value of Ethereum could fall to the $1,800 range to liquidate long positions, before repressing short positions.
Whales collect Ethereum for less than $2,000 USD.
Despite the low market, Ethereum still attracts whales to buy when its price drops. The currency is still required for DeFi finance, trading, and other service purposes, or as collateral in decentralized finance lending. Ethereum remains at a crossroads, with 45% of holders owning money, 51% carrying unrealized losses, and a small percentage neutral.
Accounts of Ethereum are conflicting, with the currency reportedly becoming obsolete or downgraded. However, the recent whale accumulation shows that the currency is at least considered capable of a sudden rally.
Individual whales also pull Ethereum from exchanges, as in the case of a buyer buying $108 million of Ethereum. An earlier example shows a whale buying Ethereum from retailers on multiple orders during the last quarter.
While Ethereum isn’t immediately rare, whales collect easily accessible coins for trading and making profits in the short term. Keeping Ethereum in an autonomous wallet is still useful, such as buffering, lending, and providing liquidity.
Ethereum is seeing selling pressure from hackers.
Ethereum remains the most commonly used currency for depositing proceeds from hacks and exploits. Some of the Ethereum generated by the Paybit vulnerability may still be washable through decentralized services.
Recently, two addresses received 14,064 Ethereums fromTHOR Chain andCoinFlip. They quickly traded tokens for over $27 million in DAI, at $1,956 per Ethereum. One of the addresses still receives Ethereum from THORChain, where the source of the funds remains unknown.
Pirate traders are very fierce, using decentralized liquidity pools with little regard for fees or slippage. Unlike trading whales, hackers take advantage of the first suitable opportunity to sell and move money.
Ethereum fees are still close to all-time lows.
Ethereum fees remain close to all-time lows, indicating a decline in demand for network services. The average transaction is $0.02, since few services are widely used.
A large portion of Ethereum’s resources are used for stablecoin conversions, as well as the Uniswap Universal Router. Public Ethereum transfers and USDT movements consume about 58 Ethereums per day in fees, the two most important activities on the network. Other types of swaps, bridge-linking, or minting of non-fungible coins (NFTs) have slowed down), where fewer projects organize airdrops using point farming.
The price of decentralized swaps fell to $0.28, DeFi borrowing fees to $0.23, and bridging interconnection to $0.09. However, network activity slowed significantly, and retail users did not return to the network.
Ethereum holds 310,000 active wallets daily, a level not seen since September 2024. At the same time, the number of titles receiving Ethereum is increasing, recording a sharp rise exceeding 203,000 wallets.
Bitcoin Rises, Ethereum Faces Demand Challenges
The price of Bitcoin (BTC), the most popular and largest digital currency by market capitalization in the world, rose nearly 1.68% to about $88,027.69. Meanwhile, the price of Ethereum (ETH), the second-largest cryptocurrency by market capitalization, fell 1%, according to data from Binance.
The return of inflation to the Ethereum supply is a key factor in fueling this pessimism. Daily Ethereum consumption has fallen to an all-time low as transaction fees drop. Consequently, the expected Ethereum consumption rate has decreased significantly, resulting in an annual increase in the Ethereum supply by 0.76%, equivalent to about 945,000 additional Ether units issued annually..
This reverses the deflationary situation that began after the successful proof-of-stake (merger) in September 2022, where some transaction fees were consumed. Ethereum’s total supply now exceeds pre-consolidation levels, nullifying the main positive narrative about the rarity of this asset.
Bank stable coin launch heralds a glimmer of institutional adoption
Despite the bleak price picture, the Ethereum network is witnessing clear institutional adoption. Recently, Castudia Bank, in collaboration with Vantage Bank, launched the first stablecoin issued by a bank in America on the Ethereum blockchain..
Using Ethereum’s infrastructure to conduct low-cost, fast and auditable transactions within a monitored banking environment will transform the region’s payment system. This release, despite pricing challenges, confirms the continued value and acceptance of the Ethereum network
Rhea Segal, research analyst at cryptocurrency exchange Delta Exchange, stated that the recent resilience of Bitcoin and Ethereum, coupled with Solana’s outstanding performance, underscores the growing impact of institutional engagement in the cryptocurrency market.
