Despite a slight rebound following a significant sell-off, Ethereum (ETH) continues to face headwinds, with prices dipping and facing challenges from declining on-chain activity. A notable whale recently liquidated a substantial portion of their Ethereum holdings, shedding over $15 million worth of ETH, raising questions about market sentiment.
Following a period exceeding two years in holding, the whale’s sudden exit has led to a drop in Ethereum’s price, which currently sits around $1,594. This represents a notable loss compared to what the asset could have generated if sold at the peak price during 2023.
Market volatility is reflected by a significant decline in trading volume for derivatives contracts and on-chain activity. While Ethereum’s active addresses decreased considerably from early 2022, uncertainty remains high, particularly with macroeconomic factors influencing investor behavior.
Despite this uncertainty, some traders remain optimistic. Their long positions dominate on prominent exchanges like Binance and OKX, indicating a belief in a potential price rebound or an opportunistic accumulation during dips.
However, bearish predictions for Ethereum’s future are emerging. Q1 2025 saw Ethereum lose over 50% of its value and the asset remains vulnerable at around $1,594, with technical indicators showing difficulty establishing support zones.
Economist Peter Schiff further reinforced these concerns, predicting a potential drop to below $1,000. This prediction is grounded in a combination of global market uncertainty due to trade tensions and general bearish sentiment.