TLDR
- Ethereum ETFs have seen over 60% decline in total net assets, with $909 million in outflows since Trump’s tariffs
- Justin Sun announced Tron will not sell its ETH holdings despite price decline, plans to collaborate with Ethereum developers
- ETH price is trading around $1,580, down 46% over last 12 months, experiencing longest multi-month downtrend since 2017
- Galaxy Digital has deposited $79.37 million worth of ETH to exchanges over past five days, raising concerns about selling pressure
- Ethereum’s Pectra upgrade, scheduled for May 7, 2025, aims to address transaction fees and network congestion issues
Ethereum’s price continues to hover below the $1,600 mark as institutional interest wanes and selling pressure mounts. The second-largest cryptocurrency by market cap has been on a downward trajectory since December, marking its longest multi-month decline since launching in 2017.
ETH traded at approximately $1,580 on Thursday, representing a 46% drop over the past 12 months. The extended bearish trend has raised concerns among investors about when the downtrend might reverse.
US spot Ethereum ETFs recorded another day of outflows on Wednesday, losing $12.01 million according to data from SoSoValue. Since the implementation of Trump’s tariffs, these funds have experienced a staggering $909 million in net outflows.
The persistent exodus of institutional money has caused the total net assets of ETH ETFs to plummet by more than 60%. These assets fell from an all-time high of $14.28 billion in December to just $5.25 billion on Wednesday.
Justin Sun’s Stance Amid Market Pressure
Despite the bearish market sentiment, Tron founder Justin Sun announced on Thursday that his organization has no plans to sell its Ethereum holdings.
“ETH is currently at a low price, but we have no intention of selling our ETH holdings,” Sun wrote on his X account.
ETH is currently at a low price, but we have no intention of selling our ETH holdings. Tron will continue to seek opportunities to collaborate with more Ethereum developers and build our industry together.
— H.E. Justin Sun 🍌 (@justinsuntron) April 17, 2025
Sun, who reportedly holds around 665,000 ETH valued at just under $1 billion at current prices, also revealed plans to strengthen ties with the Ethereum community. “Tron will continue to seek opportunities to collaborate with more Ethereum developers and build our industry together,” he added.
This show of confidence comes at a crucial time for Ethereum. The value of Sun’s ETH holdings has reportedly decreased from previous highs of approximately $2.5 billion due to the market downturn.
While Sun maintains his bullish stance, not all large holders share his outlook. Digital asset firm Galaxy Digital has deposited 49,681 ETH worth about $79.37 million to Binance and Coinbase exchanges over the past five days, according to wallet tracking platform Lookonchain.
This activity has raised speculation about potential selling pressure from institutional investors.
Technical Analysis and Market Sentiment
Ethereum saw $23.10 million in futures liquidations in the past 24 hours, with $12.52 million in long positions and $10.58 million in short positions being closed, according to Coinglass data.
The price has been moving within a descending channel since mid-December, with technical indicators showing mixed signals. The Relative Strength Index (RSI) is approaching oversold territory, while the Stochastic Oscillator has remained in oversold conditions since late February.
A breakdown below the channel’s lower boundary could accelerate ETH’s decline. However, a breakout above the upper boundary and reclaiming the $2,000 level could signal a bullish reversal.
Currently, the price shows some resilience around the $1,580 support level. If bulls gain momentum, ETH could potentially test the $1,904 resistance level before challenging the psychologically important $2,000 mark.
However, if bearish pressure continues, the price might drop toward $1,526 in the near term.
Upcoming Pectra Upgrade
Ethereum’s upcoming Pectra upgrade, scheduled for May 7, 2025, could potentially revive network activity and investor interest.
The first phase of this upgrade will establish a new layer-2 blob capacity, which aims to increase transaction efficiency while accepting payments in stablecoins like USDC and DAI.
Pectra will also raise the maximum staking limit from 32 ETH to 2,048 ETH, potentially attracting more institutional participation in the network.
The second phase, planned for late 2025 or early 2026, will implement a new data structure to enhance Ethereum’s scalability.
These improvements come as Ethereum transaction fees have reached their lowest point since 2020, with users paying just $0.168 per transaction according to data from Santiment.
While low fees benefit users, they also reflect reduced blockchain utilization and decreased network activity. Marketing Director at Santiment, Brian Quinlivan, noted that Ethereum price and transaction speed positively correlate to user activity levels.
The drop in fees stems from a general decrease in blockchain usage, with retail investors largely stepping away from the ecosystem amid global economic uncertainty and U.S. tariff market unpredictability.
Proponents of Ethereum hope that the Pectra upgrade will make the network more efficient and create conditions for both existing and new users to participate, potentially triggering a revival in activity and price.
ETH ETF issuers, including Fidelity, Bitwise, Grayscale, and 21Shares, are seeking approval from the Securities and Exchange Commission to allow staking within their ETH ETF products. If approved, this would enable investors to earn approximately 3% yield on their ETH ETF holdings, which could help slow down selling pressure.
Despite current market challenges, Ethereum’s long-term outlook remains tied to its fundamental role in DeFi and blockchain-based applications, as well as continued development of the platform.
Investors and users alike are watching closely as Ethereum navigates this challenging period, with many hoping that technical upgrades and sustained development will eventually lead to a price recovery.
