EthereumEFT

Despite a recent bounce in Ethereum’s price, a majority of investors in spot Ethereum exchange-traded funds (ETFs) from BlackRock and Fidelity Investments are suffering sizable paper losses, according to a new report from blockchain analytics firm Glassnode.The report reveals that the average investor in both BlackRock and Fidelity's Ether ETFs is down by around -21%, highlighting the continued volatility and challenges in institutional crypto adoption.
“The average investor in the BlackRock and Fidelity Ethereum ETFs are now substantially underwater on their position, holding an unrealized loss of approximately -21% on average,” stated Glassnode on May 29.
ETH ETF Cost Basis Remains Well Above Market Price
As of writing, Ethereum is trading at $2,601 (CoinMarketCap). However, the average cost basis for BlackRock’s ETF sits at $3,300, while Fidelity’s is even higher at $3,500. This sharp contrast between purchase price and current value has left investors in the red.
ETH hasn’t traded above $3,000 since February 2, before the digital asset slumped in response to U.S. President Donald Trump’s executive order implementing steep import tariffs on goods from China, Mexico, and Canada.
Trump Tariffs Sparked Crypto Market Downturn
Glassnode points out that net ETF outflows intensified when ETH dipped below the average cost basis of ETF investors, particularly in August 2024, January, and March 2025. The yearly low of $1,472 came on April 9, the very day Trump’s sweeping tariffs took effect globally.
However, there’s been a notable recovery in ETH’s price, which has risen 44.25% over the past month, and sparked renewed institutional interest. Since May 16, spot Ether ETFs have recorded nine straight days of inflows totaling $435.6 million, signaling growing confidence as tariff-related uncertainty eases.
Court Ruling and Political Winds Shift Sentiment
On May 28, a U.S. federal court blocked most of Trump’s tariffs, leading analysts to predict further upside momentum for Ethereum and the broader crypto market. This could potentially lead to a reversal of ETF losses if the rally holds.
Since their U.S. launch in July 2024, spot Ether ETFs have attracted $2.94 billion in total inflows. Ethereum was priced at $3,536 on launch day, peaking at $4,007 during a Trump election victory rally in December before tapering off.
Despite their popularity, Glassnode noted that the ETFs have had a minimal impact on ETH’s spot market, initially accounting for just ±1.5% of trading volume, growing to 2.5% in November 2024, before falling back toward 1.5% in recent weeks.
ETF Demand Muted by Staking Exclusion
At the Digital Asset Summit on March 20, Robbie Mitchnick, Head of Digital Assets at BlackRock, addressed the limitations of the product, commenting that Ethereum ETFs are “less perfect” without staking functionality — a feature that differentiates Ether from Bitcoin and is crucial to long-term ETH holders seeking yield.
With the crypto industry closely monitoring how regulators approach staking integration in ETFs, investors may remain cautious until more complete solutions emerge.
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Ethereum has just recorded its largest single-day accumulation inflow in history, with 449,000 ETH entering accumulation addresses on April 22, despite the cryptocurrency's price falling to the $1,400 range. The massive inflow, worth roughly $786 million at an average price of $1,750, points to strong conviction among long-term holders, even amid a broader market downturn. This marks the highest level of accumulation since 2018, signaling growing confidence in Ethereum’s future. However, these addresses' realized price is $1,981, meaning many of these holders are currently underwater, raising questions about the short-term upside potential.
Active Addresses Rise, But DeFi Activity Still Lags
Network fundamentals show positive momentum, with active Ethereum addresses climbing from 306,211 to 336,366 between April 20 and 22, a 10% increase. This uptick aligns with the accumulation trend, reinforcing bullish sentiment.
Yet, DeFi activity remains stagnant. According to DefiLlama, DEX volume has plateaued, with weekly transactions averaging 1.3 million, reflecting weak user engagement across DeFi protocols. This divergence between network use and investor accumulation creates an uncertain backdrop for Ethereum's next move.
$1,895 Emerges as Key Resistance
Ethereum now faces a major resistance level at $1,895, highlighted by a concentration of 1.64 million ETH accumulated during November 2024, according to the Cost Basis Distribution (CBD) heatmap. This is further reinforced by technical resistance at the 50-day exponential moving average (EMA)—a zone that typically defines trend direction.
If Ethereum fails to break this level, bearish pressure could mount, especially as ETH remains locked in a macro downtrend. A daily close above $2,142 is essential to invalidate the pattern of lower highs and lower lows and to initiate a meaningful recovery.
Bearish Fractal Sparks Caution Below $1,400
Prominent crypto trader Rektproof warns that Ethereum might be forming a bearish fractal—a repeating chart pattern that previously preceded sharp declines. Ethereum could retest or break below $1,400 if the pattern plays out, especially if broader market sentiment weakens.
While accumulation data suggests strong long-term interest, Ethereum’s path to recovery is fraught with challenges, from weak DeFi momentum to structural resistance. Traders and investors are advised to monitor price action closely, especially as macroeconomic pressures and technical signals collide.
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