Ethereum’s value drops to lowest point in nine months, loses over $100 billion in market value over the past week
Ethereum, the second-largest cryptocurrency, has experienced a significant decline in market capitalization in the past week. According to data from CoinGecko, the value of Ethereum has dropped by over $100 billion, bringing its price below the $2,200 mark, which represents a nearly nine-month low for the digital currency.
Attempting to predict when Ethereum’s price will bottom out is a challenging task, as the market remains volatile and unpredictable. Jim Hwang, the COO of crypto investment firm Firinne Capital, noted that there could be potential support around the $1,500 level, based on previous levels of volatility seen in April 2025.
Despite the decrease in price, the fundamentals of the Ethereum network remain strong. Hwang pointed out that there has been a significant increase in the tokenization of real-world assets and the usage metrics of Ethereum, indicating that the network continues to grow and evolve.
Interestingly, while Ethereum’s price has been on a downward trend, spot Ethereum ETFs have seen outflows totaling $342 million so far this year. This discrepancy between the price action of Ethereum and the outflows from ETFs is puzzling, as it does not align with the positive growth and development happening within the Ethereum ecosystem.
The recent price slump of Ethereum coincides with comments made by Vitalik Buterin, one of the co-founders of Ethereum. Buterin expressed his view that the original vision of layer 2 solutions (L2s) and their role in Ethereum may no longer be relevant. He pointed out that the progress of layer 2 networks has been slower and more challenging than anticipated, while the primary layer of Ethereum (L1) is scaling and reducing fees effectively.
In conclusion, Ethereum is facing a challenging period as its price continues to decline, reaching a nine-month low. Despite this downturn, the underlying fundamentals of the network remain robust, with ongoing developments in the tokenization of assets and network usage. The discrepancy between the price action of Ethereum and the outflows from spot Ethereum ETFs raises questions about the factors influencing investor sentiment towards the digital currency. As Ethereum navigates through this period of volatility, it will be interesting to see how the network evolves and adapts to overcome these challenges.
