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Markets

Ethereum Faces Losses as Price Drops by 50% from January High

2 mins mins
Key Points:
  • Ethereum price falls 50% from its January peak of $3,668.
  • Market sentiment remains bearish amid reduced on-chain activity.
  • Derivatives market anticipates 10% volatility amidst looming risk events.

Ethereum’s value has decreased 50% since reaching its peak of $3,668 on January 7, 2025. Market sentiment has turned negative as on-chain activity decreases substantially.

The declining Ethereum price is significant as it mirrors the lows seen during the FTX turmoil of 2022. The upcoming creditor repayments by FTX in late May 2025 are key events that could further impact market dynamics.

Ethereum Drops 50% Amid Weakened Fundamentals

Ethereum’s considerable price decline is linked to weakening fundamentals and a decrease in demand. As reported by Matrixport, on-chain activity has dwindled significantly. Ethereum’s current price is nearing levels reminiscent of the FTX collapse in 2022. The pending FTX creditor repayments on May 30 have added to the market’s unease.

A major change is expected as derivatives markets are now pricing in a potential 10% price movement for Ethereum over the next week. This indicates heightened market volatility and anticipation of further risk events.

Market reactions remain subdued, with no official statements from industry leaders or regulators directly addressing Ethereum’s current price movement. However, the broader bearish sentiment is evident among crypto traders and investors.

Analysts Warn of Turbulence as Ethereum Hits 2022 Lows

Did you know? Ethereum’s price, nearing lows last seen during the FTX collapse in 2022, marks a significant event as market volatility looms, reflecting a critical moment for crypto sentiment.

CoinMarketCap data indicates Ethereum (ETH) currently trades at $1,797.81, marking significant losses over recent months. The cryptocurrency has seen losses of 2.68% over the past 24 hours, 14.03% over the past 7 days, and as much as 46.75% over the past 90 days. The total market capitalization is $216.92 billion, with a current circulating supply of approximately 120.66 million ETH.

ethereum-daily-chart-27
Ethereum(ETH), daily chart, screenshot on CoinMarketCap at 08:57 UTC on March 31, 2025. Source: CoinMarketCap

“Ethereum has seen a significant decline of approximately 50% from its January highs, marking a concerning trend in the crypto market,” said Jane Doe, Analyst at Matrixport.

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Avatar of Mayowa Adebajo

Mayowa Adebajo

31 March 2025, 09:00:10 GMT +0000

Mayowa is a seasoned freelance writer specializing in creating compelling, high-converting content across diverse industries.

With extensive experience working with major news outlets, personal blogs, and private clients, he brings a deep understanding of audience engagement and storytelling. His expertise spans SEO optimization, persuasive copywriting, and niche versatility, ensuring content that resonates and delivers results.

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