Ether remains trapped in a three-month downward trend because major economic issues plus strong sales from the U.S.-based Ether ETFs force investors to sell off. During its downward movement that started December 16, 2024 Ethereum lost more than half of its value until it reached $1,930 using TradingView data.

Economists identify worldwide financial volatility alongside increased trade tensions from U.S. trade tariffs plus decreasing Ethereum network work as fundamental reasons behind the market drop.

The downturn for Ethereum comes mainly from its inability to attract new projects and builders due to operational fee levels according to Bitfinex researchers. The analysts believe Ether will likely drop more but $1,800 stands as its main defense point. Ether experiences increasing problems along with other investment opportunities because market downturns provoke overall risk asset losses among investors. 

Ethereum Downtrend Extends Further

The market remains cautious about starting a bear cycle earlier than normal because investors fear it might differ from the typical four-year cycle most cryptocurrencies experience. Analysts predict Bitcoin will drop to $70,000 during a market correction even though it leads market movements.

Investors keep withdrawing funds from U.S. spot Ether ETFs continuing their four-week profit trend. According to Sosovalue statistics Ethereum could not rebound because funds withdrew $119 million from U.S. spot Ether ETFs last week. Stella Zlatareva from Nexo explains that ongoing trading withdrawals from U.S. Ether ETFs stops Ethereum price recovery and reduces investment trust in the asset.

“ETH’s 20% decline last week pushed its price below the key $2,200 trendline that had supported its bull market recovery since 2022. The modest price action may be attributed, as with Bitcoin, to ETFs.”

A group of key institutional crypto firms still anticipate Ether’s future prices will rise positively. Asset management firm VanEck predicts Ethereum will reach its market peak at $6,000 in 2025 before breaking its resistance. According to VanEck ETF analysts Ethereum will probably bounce back later in the market cycle rather than handle current downturns.

Ethereum Faces Key Support Levels

Ethereum faces its market challenges under changing cryptocurrency conditions that include regulatory risk plus institution and economy trends. Investors stick to a cautious approach in their market participation thanks to increasing interest rates and global tensions that increase trading uncertainty. Developers continue to support Ethereum because its development and scaling plans will bring new opportunities and secure future growth.

The market weighs both technical and market factors that affect Ether at this moment. Traders will follow ETF movements alongside analysts and institutional investors who measure Ethereum’s market trends to predict its price outcomes through 2019’s second half. While speculative investors currently show concern Ethereum supporters wait for further financial and technical advancements to increase adoption.