Amid the notable macroeconomic uncertainty caused by the tariff trade wars, Ethereum (ETH) price has suffered significant losses. The large-cap altcoin, with a fully diluted valuation of about $225 billion and a 24-hour average trading volume of around $14.8 billion, has declined over 56 percent since early December to trade about $1,869 on April 2, during the early Western financial markets.
Ethereum Network Suffers Low Demand
The overall demand for Ether, especially by institutional investors, has remained significantly low in the past few months. For instance, the U.S. spot Ether ETF recorded a net cash outflow of about $403 million.
According to on-chain data from Santiment, Ether whales, with an account balance of between 100k and 1 million, have sold around 760 ETH in the past two weeks to currently hold about 18.81 million coins.
Meanwhile, the Ethereum network has recorded a 63 percent decline in whale activity since February 25.
What Next?
After consistently closing below the 200-week Simple Moving Average (SMA), Ethereum price has suffered heightened bearish sentiment. From a technical analysis point of view, the ETH/USD price has been retesting a crucial support level above $1,800 in the past four weeks, which could yield a renewed bullish sentiment ahead.
However, a consistent close below the final rising weekly logarithmic trend in the coming weeks will spell doom for the entire altcoin market. With the weekly Relative Strength Index (RSI) hovering at oversold levels, the likelihood of a V-shaped reversal remains substantial.
Moreover, the crypto market is expected to perform better in the second quarter of 2025 after recording a poor performance in the 1st quarter.
