Summary
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Ethereum’s price recently fell below $1,800, reaching its lowest level since November 2024, prompting large investors (“whales”) to accumulate over 130,000 ETH on Wednesday.
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Analysts attribute the price decline to macroeconomic factors, specifically new US trade tariffs, which have triggered a “risk-off” sentiment in broader markets.
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Despite price volatility and market skepticism, an analyst argues that Ethereum’s fundamentals remain strong, highlighting increasing network adoption and lower transaction fees, suggesting the price dip presents a buying opportunity.
As Ethereum’s price decreased, falling below $1,800 to reach its lowest point since November 2024, large investors known as “whales” increased their Ethereum holdings by over 130,000 ETH on Wednesday.
This data comes from a report by IntoTheBlock.
Currently, Ethereum is trading at approximately $1,700, according to CoinGecko data.
This reflects a 6% decrease over the past 24 hours. The cryptocurrency concluded the first quarter of 2025 with a 45% price drop, marking one of its most significant quarterly declines.
Analysts attribute the recent price downturn to broader economic uncertainties, particularly those stemming from new US trade tariffs.
President Trump’s announcement of extensive tariffs on April 2, aimed at reducing trade deficits and boosting US manufacturing, is considered a key factor.
This policy shift has generated a “risk-off” environment in investment markets.
Investors are reportedly reducing exposure to assets perceived as higher risk, triggering widespread selling across both US stock and cryptocurrency markets.
Macroeconomic Factors and US Tariffs Drive Ethereum Price Decline
Despite this downward market pressure, some large Ethereum holders have interpreted the recent price decrease as an opportune moment to buy.
Lookonchain data shows one instance of a whale acquiring 6,488 ETH for $1,772 earlier today.
Ethereum’s underlying strength remains, despite prevailing market skepticism surrounding its long-term position.
Ethereum has encountered increased skepticism recently, with some investors questioning its market dominance given the growing competition from alternative blockchain platforms.
Jean Rausis, co-founder of the DeFi platform Smardex, argues that Ethereum’s fundamental position in the crypto ecosystem remains robust despite current market uncertainties.
In a statement provided to Crypto Briefing, Rausis stated, “While Bitcoin is primarily regarded as a digital store of value, Ethereum is the primary platform driving the expansion of decentralized applications.”
“Despite the emergence of numerous blockchains seeking to challenge its position, Ethereum maintains an unparalleled lead in terms of security and user adoption,” Rausis added.
Analyst Highlights Strong Ethereum Fundamentals Despite Market Skepticism
According to Rausis’s analysis of network data, the average number of new daily Ethereum addresses reached 200,000 in January 2025, which is double the average daily rate observed throughout 2024.
He also points to a reduction in average gas fees to $0.4, a significant decrease from peaks of $15 experienced over the last two years.
“While ETH’s price has experienced a short-term setback, prompting some to predict its decline, Ethereum’s fundamental infrastructure will persist,” Rausis commented.
“Many currently prominent blockchains may not achieve the same long-term sustainability.”
“From my perspective, current lower Ethereum prices present a substantial investment opportunity, rather than a cause for concern regarding temporary losses,” he concluded.
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Ethereum developers have set May 7th as the target launch date for the “Pectra” upgrade, which includes 11 Ethereum Improvement Proposals (EIPs) aimed at improving network efficiency, user experience, and staking capabilities. Key improvements include improvements in wallet usability and account abstraction (EIP-7702), an increased validator stake limit (EIP-7251), and rollup scalability enhancements (EIP-7691). The date is subject to change based on ongoing testing results and any unforeseen issues. The decision was made during a recent meeting of core developers, which confirmed the May 7th target. The decision was made following successful testing on…[Read More]
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