Why Ethereum Price is Down Today? How Low Will ETH Price Crash?
Bitcoin and other major cryptocurrencies fell Tuesday as optimism about the proposed strategic U.S. cryptocurrency reserves disappeared. The decline also coincides with the rise in trade tensions as President Trump confirmed tariffs on Canada, Mexico and China will take effect within hours.
Amid a wider market decline, the previous Ether (ETH) reached levels not seen since November 2023 as volatility in the threat of a trade war by U.S. President Trump continues to affect the market. ETH has dropped by 15% in the past 24 hours. Its market capitalization also fell by more than 13% to $252.89 billion. A brief surge of more than $2,500 after Trump’s crypto reserve announcement, Ethereum has now collapsed to $2,050, eliminating all weekend gains.
Inadequate performance of ether
Ethereum has declined in the past three months, mainly due to negative investor sentiment compared to Bitcoin’s poor performance. In addition, weak institutional demand and broader macroeconomic factors, such as fear of the trade war, concerns about inflation and ongoing stock market weakness have led to a decrease in investor risk appetite. All of these factors together seriously affect the price of ether.
Its open interest has fallen 10.8% to $18.8 billion, while 24-hour liquidation surged to $209 million, according to Coinglass Data. Meanwhile, Polmoarket Bettors predicts that by the end of this month, ETH has a 76% chance of reaching $1,900.
Ether ETF outflow increases dilemma
In addition, the Ether ETF experienced a massive outflow last week, totaling $335 million, adding to the overall bearish sentiment. BlackRock’s iShares Ethereum Trust (ETHA) has taken the biggest hit, with the fund exceeding $164 million since February 24. Etha shares also fell sharply, down more than 38.6% since the beginning of 2025 to $16.09. This shows that Ethereum has completely lost institutional interests, thus eliminating all gains after the U.S. election.
The worst quarter in ETH history?
Since its launch eight months ago, ETFs are now down 40%, down 49% from their December 2023 peak. “The worst part about investors is that ETH still has a long way to go,” Peter Schiff noted.
ETH has fallen by 36% since the beginning of 2025, which could be the worst first quarter in its history. Analyst Venture Founder noted that the drop to $1,600 would make it the worst quarter in Ethereum history, worse than the decline in the first quarter of 2018 after the previous cycle peak.
But while Ethereum is currently down to $2,000, market analysts believe it offers buy opportunities for investors.
