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On April 9, the price of Ethereum (ETH) dropped to $1,384—its lowest level since March 2023. This prompted on-chain analyst theKriptolik from CryptoQuant to explain why ETH continues to decline despite previous bullish momentum.

According to the expert, there are three main reasons behind Ethereum’s prolonged bearish trend in 2025:

1. Capital Outflows from Ethereum ETFs

One of the biggest pressures on Ethereum comes from the significant capital outflow from Ethereum-based exchange-traded funds (ETFs). Over the past two weeks alone, Ethereum ETFs have lost $81.1 million in capital, suggesting that institutional interest is fading—a negative signal for the asset’s mid-term price outlook.

2. Declining Open Interest in Ethereum Futures

The open interest in ETH futures has dropped by 48% compared to its January 2025 peak, now standing at $16.7 billion. This indicates a steep decline in leveraged trading activity, further contributing to lower market liquidity and confidence among speculators and institutional players.

3. High Gas Fees Are Driving Users to Other Blockchains

Perhaps the most critical issue is Ethereum’s persistent high transaction fees, which continue to undermine its competitiveness compared to other blockchain networks.

TheKriptolik notes that due to Ethereum’s expensive gas fees, developers and users are increasingly migrating to more cost-efficient alternatives. According to blockchain statistics:

BNB Smart Chain has already surpassed Ethereum in terms of:
Active decentralized applications (dApps)
User activity
Transaction count

The only aspects where Ethereum maintains an edge are:

Total value locked (TVL) in DeFi
Aggregate volume of processed operations

Bearish Trend Likely to Continue

Ethereum has already dropped 54% since the start of 2025, and theKriptolik forecasts that the downtrend will persist. His key reason: ETH’s market price has now fallen below its realized price, a condition that typically signals the onset of a capitulation phase.

“When market price drops below realized price, investors begin to lose confidence in the asset’s future, often leading to mass sell-offs,” the analyst explains.

In crypto terms, this phase is often marked by panic selling as holders abandon hope of recovery and attempt to cut their losses.

Worst-Case Scenario: Ethereum Could Drop to $1,000

If the bearish scenario plays out as predicted, Ethereum could plunge even further, potentially testing the psychological support at $1,000. This would mark a dramatic downturn and possibly trigger broader shakeouts in the altcoin market.

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Madeline

I have been drawn to technology and science fiction since I was a child. Studying IT has drawn me to the world of cryptocurrencies, where I have been working since 2014. I have learned a lot since then. And I still have a lot to learn. What fascinates me most about them is that they connect so many worlds together and the possibility of free choice. Without limits.