TLDR
- Ethereum (ETH) price trading around $1,580, down 46% over the past 12 months
- ETH ETFs have seen over 60% decline in total net assets, dropping from $14.28 billion to $5.25 billion
- Justin Sun announced Tron will not sell its ETH holdings despite the price drop
- Average ETH transaction fees have fallen to $0.168, lowest since 2020
- Upcoming Pectra upgrade on May 7, 2025 aims to improve transaction efficiency and network scalability
Ethereum (ETH) is trading just below $1,600, continuing a downtrend that has persisted since December 2024. The second-largest cryptocurrency has lost nearly half its value over the past year, causing concern among investors while presenting potential opportunities for long-term believers.
US spot Ethereum ETFs have been particularly hard hit, with total net assets plummeting over 60%. These funds have dropped from an all-time high of $14.28 billion in December to just $5.25 billion currently, according to data from SoSoValue.
ETH Price
The ETFs have experienced sustained outflows, shedding $12.01 million on Wednesday alone. Since the implementation of Trump’s tariffs, ETH ETFs have seen a net outflow of $909 million, reflecting increased institutional risk-off sentiment.
This selling pressure comes as several ETF issuers seek approval from the Securities and Exchange Commission (SEC) to allow staking within their ETH ETF products. Companies including Fidelity, Bitwise, Grayscale, and 21Shares hope this change would allow investors to earn approximately 3% yield on their holdings.
Justin Sun Remains Bullish Despite Market Pressure
In contrast to the negative market sentiment, Tron founder Justin Sun announced Thursday that he has no plans to sell his ETH holdings despite the weak price action.
“ETH is currently at a low price, but we have no intention of selling our ETH holdings,” Sun wrote on X. He added that Tron will continue seeking opportunities to collaborate with Ethereum developers.
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 has been a major ETH investor, increasing his holdings several times over the past year. While he reportedly transferred a large amount of ETH to his HTX exchange in Q4 2024, he still maintains substantial ETH positions across several staking protocols.
Though Sun hasn’t publicly disclosed his total ETH holdings, speculation suggests he controls around 665,000 ETH valued at just under $1 billion at current prices. This represents a sharp decline from earlier valuations around $2.5 billion when prices were higher.
Not all large holders share Sun’s patience. Digital asset firm Galaxy Digital has deposited 49,681 ETH worth about $79.37 million into Binance and Coinbase over the past five days, according to wallet tracking platform Lookonchain.
Network Activity Shows Signs of Weakness
Ethereum’s price struggles come alongside declining network activity. Transaction fees have fallen to just $0.168 per transaction, their lowest level since 2020, according to data from Santiment.
This fee drop stems directly from decreased blockchain utilization, with reduced transaction activity and lower usage of smart contracts.
“When numerous people engage with Ethereum, users compete to pay higher fees for faster transaction processing. The current low transaction rate enables users to minimize their bids,” explained Brian Quinlivan, Marketing Director at Santiment.
Retail investors have largely diverted from the ecosystem, contributing to the fee decline. Worldwide economic uncertainty and unpredictable U.S. tariff markets have played significant roles in Ethereum activity’s decrease.
The downtrend has also affected traders, with $23.10 million in futures liquidations occurring in the past 24 hours. Long liquidations totaled $12.52 million, while short liquidations reached $10.58 million.
ETH has been moving within a key descending channel for over four consecutive months, marking its longest multi-month downtrend since launching in 2017.
Pectra Upgrade Offers Hope for Recovery
The upcoming Pectra upgrade, scheduled for May 7, 2025, may provide a catalyst for renewed network activity and price appreciation.
This upgrade aims to create solutions for transaction fees and network congestion issues. The first stage will establish a new layer-2 blob capacity, increasing transaction efficiency while accepting payments in USDC and DAI stablecoins.
Pectra will also boost institutional investor engagement through an enhanced staking limit of 2,048 ETH, well above the previous 32 ETH limit.
A second stage of the upgrade, planned for late 2025 or early 2026, will implement a new data structure to enhance Ethereum’s scaling capacity.
These improvements could potentially drive new adoption and restore network activity, creating conditions for both retail and institutional users to return to the ecosystem.
From a technical perspective, Ethereum is showing mixed signals. The Relative Strength Index (RSI) is verging on oversold territory, while the Stochastic Oscillator has remained oversold since late February.
If bulls can gain momentum, a break above the $1,904 resistance level could open the door to a retest of $2,000, with potential to reach $2,500 in a highly bullish scenario.
However, bearish prospects remain evident as ETH trades below key moving averages. A breakdown below the channel’s lower boundary could accelerate ETH’s decline, while bears gaining control might push the price toward the $1,526 mark.
