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Bitcoin and other major cryptocurrencies fell on Tuesday as optimism around the proposed US Crypto Strategic Reserve faded. The drop also coincided with rising trade tensions, as President Trump confirmed that tariffs on Canada, Mexico, and China would go into effect in hours.
Amidst a broader market downturn, Ether (ETH) is hitting levels not seen since November 2023, as volatility from U.S. President Trump’s trade war threat continues to impact the market. ETH has dropped 15% in the last 24 hours. Its market cap also witnessed a decline over 13% to $252.89 billion. After a brief spike above $2,500 following Trump’s crypto reserve announcement, Ethereum has now collapsed to $2,050, erasing all its weekend gains.
Ether’s Lackluster Performance
Ether has seen a decline over the past three months, largely due to negative investor sentiment and underperformance compared to Bitcoin. Additionally, weak institutional demand and broader macroeconomic factors like fears over the trade war, concerns about inflation, and ongoing stock market weakness have contributed to a decrease in risk appetite among investors. All of these factors together have weighed heavily on Ether’s price.
Its Open interest has dropped over 10.8% to $18.8 billion, while 24-hour liquidations have surged to $209 million, according to Coinglass data. Meanwhile, Polymarket bettors are forecasting a 76% chance of ETH reaching $1,900 by the end of the month.
Ether ETF Outflows Add To the Plight
Additionally, Ether ETFs experienced significant outflows last week, totaling $335 million, adding to the overall bearish sentiment. BlackRock’s iShares Ethereum Trust (ETHA) was hit the hardest, with more than $164 million leaving the fund since February 24. The price of ETHA shares has also fallen sharply, dropping over 38.6% since the start of 2025 to $16.09. This indicates a complete loss of institutional interest in Ethereum, erasing all the gains it made after the US election.
Worst Quarter In ETH’s History?
The ETFs are now down 40% since their launch eight months ago and 49% below their highs in December 2023. “The worst part for investors is that ETH still has a long way to fall,” noted Peter Schiff.
With a 36% drop in ETH’s price since the start of 2025, this could become the worst-performing Q1 in its history. Analyst Venturefounder pointed out that a drop to $1,600 would make this the worst quarter in Ethereum’s history, worse than the decline in Q1 2018 after the previous cycle’s peak.
However, despite Ethereum’s current drop to $2,000, market analysts believe it presents a buying opportunity for investors.