Ethereum (ETH) is experiencing a severe downturn, marking what could be its worst-performing first quarter in history. After a brief rally, ETH faced a brutal rejection at $2,500, plunging to the critical $2,000 support level. With year-to-date losses exceeding 36%, market analysts warn of further declines, with some eyeing a potential drop to $1,600.
Ethereum ETFs Face Major Outflows
Despite Ethereum being included in the U.S. strategic reserves for crypto assets, institutional interest appears to be dwindling. Over the past eight sessions, Ethereum ETFs have witnessed massive outflows, particularly BlackRock’s iShares Ethereum Trust (ETHA), which saw a staggering $164 million in withdrawals since February 24. The ETHA share price has dropped by 38.59% since the beginning of 2025, currently trading at $16.09.
Popular economist Peter Schiff highlighted the growing skepticism around ETH, stating:
“Despite Trump’s Truth Social Sunday Ethereum pump, the Ethereum ETFs closed at record lows today. They are now down 40% since their launch and 49% below their December 2023 highs. The worst part for investors is that ETH still has a long way to fall.”
Smart Whales Profit as Market Crashes
As Ethereum’s price continues to decline, opportunistic whales have capitalized on the volatility. One major ETH whale, executing a 50x leveraged short position, currently holds an unrealized profit exceeding $81 million. With open interest plummeting by 10.8% to $18.8 billion and liquidations reaching $209 million in the last 24 hours, the market is witnessing intense selling pressure.
Is This a Buy-the-Dip Opportunity?
While short-term sentiment remains bearish, some analysts believe the dip presents a buying opportunity. Market analyst IncomeSharks commented on ETH’s 14% crash, stating that the “red candle is too big not to buy.” Meanwhile, crypto commentator Venturefounder suggests Ethereum is entering an “undervaluation zone,” indicating a potential accumulation phase for long-term investors.
As Ethereum approaches a critical inflection point, all eyes remain on whether the altcoin can hold the $2,000 support or if a deeper correction awaits. The coming weeks will be crucial in determining ETH’s trajectory for the remainder of 2025.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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