Ether risks $1.8K correction as ETF outflows, tariff fears continue

Ether is struggling to reverse a near three-month downtrend as macroeconomic concerns and continued selling pressure from US Ether exchange-traded funds (ETFs) weigh on investor sentiment.

Ether (ETH) has fallen by more than 53% since it began its downtrend on Dec. 16, 2024, when it peaked above $4,100, TradingView data shows.

The downtrend has been fueled by global uncertainty around US import tariffs triggering trade war concerns and a lack of builder activity on the Ethereum ( $2,419.65 ) network, according to Bifinex analysts.

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“A lack of new projects or builders moving to ETH, primarily due to high operating fees, is likely the principal reason behind the lackluster performance of ETH. […] We believe that for ETH, $1,800 will be a strong level to watch,” the analysts told Cointelegraph.

“However, the current sell-off is not being seen solely in ETH, we have seen a marketwide correction as fears over the impact of tariffs hit all risk assets,” they added.

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Crypto investors are also wary of an early bear market cycle that could break from the traditional four-year crypto market pattern.

Bitcoin ( $77,180.00 ) (BTC) is at risk of falling to $70,000 as cryptocurrencies and global financial markets undergo a “macro correction” while remaining in a bull market cycle, said Aurelie Barthere, principal research analyst at blockchain analytics firm Nansen.

Related: Deutsche Boerse to launch Bitcoin ( $77,180.00 ) , Ether institutional custody: Report

Ether price limited by ETF outflows

Adding to Ethereum ( $2,419.65 ) ’s challenges, continued outflows from Ether ETFs are limiting the asset’s price recovery, according to Stella Zlatareva, dispatch editor at digital asset investment platform Nexo:

“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 ( $77,180.00 ) , to ETFs.”

US spot Ether ETFs have entered their fourth week of consecutive net negative outflows, after seeing over $119 million worth of cumulative outflows during the previous week, Sosovalue data shows.

Still, some notable institutional crypto market participants remain optimistic about Ether’s price for 2025. VanEck predicted a $6,000 cycle top for Ether’s price and a $180,000 Bitcoin ( $77,180.00 ) price during 2025.

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