Ethereum (ETH) is under heavy pressure. Prices have dropped over 10% in the past week, breaking through key support levels. This sell-off came as Donald Trump pushed forward with harsh new tariffs on Chinese goods, triggering a sharp downturn across global markets. Ethereum didn’t hold up—falling to its lowest point since early 2023.
World Liberty Financial, Trump’s own DeFi project, just dumped over 5,400 ETH for $8 million. This sale locked in millions in losses. Analysts say it’s a sign that even institutional investors are giving up on a quick rebound. The bears are clearly in control.
Bitcoin and Ethereum: Still Tied to Traditional Markets
Bitcoin and Ethereum are both showing signs of their connection to global financial conditions. Despite some early hope that crypto would break free from Wall Street’s shadow, that hasn’t happened yet. When stocks crash, crypto follows. Lennix Lai from OKX says Bitcoin still reacts mostly to global liquidity—not stock prices directly.
The latest Bitcoin ETF outflows confirm that point. U.S.-listed Bitcoin ETFs saw $326 million in redemptions in one day, led by BlackRock’s IBIT. Ethereum fared even worse, with major players like World Liberty Financial and long-term whales selling off large amounts of ETH. This isn’t random—it’s investors rushing to reduce risk as markets get shaky.
Ethereum Bears Gain Ground
Ethereum bears have crushed support after support. With ETH dropping below $1,400, analysts now eye $1,200 as the next key level. That’s where bulls might try to make a stand. But it’s not looking good. Since the start of 2025, ETH has fallen nearly 57%.
Long-term holders are also throwing in the towel. According to Arkham Intelligence, a prominent Ethereum whale sold 10,000 ETH for $15.71 million after holding for over 900 days. The investor originally bought in at $1,295 per ETH in late 2022. Despite once being up $27 million when ETH hit $4,000, they cashed out with a modest $2.75 million gain. The exit, alongside World Liberty Financial’s recent sell-off, signals fading conviction—and possibly a looming retail sell-off.
After holding $ETH for over 900 days, a whale finally capitulated — selling all 10,000 $ETH($15.71M) today.
The whale originally bought 10,000 $ETH($12.95M) at an average of $1,295 on Oct 4 and Nov 14, 2022.
He didn’t sell when $ETH broke through $4,000.
But today, he exited… pic.twitter.com/KY7TZ02az4
— Lookonchain (@lookonchain) April 8, 2025
ETF Outflows and Tariffs Add to the Pressure
The crypto market is reeling not just from price drops—but from structural outflows. Bitcoin ETFs have now seen days of consistent redemptions. Investors are pulling out fast, spooked by both market volatility and political chaos. Trump’s 104% tariffs are already roiling equities. Now, they’re dragging crypto down with them.
U.S. Treasury yields are also spiking, making borrowing more expensive. Some analysts believe this rise is due to forced liquidations—not normal market moves. That’s a red flag. When bonds fall and yields rise that fast, it signals panic. And crypto—especially Ethereum—is feeling the shockwaves.
What’s Next for the Crypto Market?
Ethereum’s future in 2025 remains uncertain. The ETF narrative around Bitcoin once promised mass adoption, but outflows tell a different story. Trump’s tariff war is now the top concern for traders, and it’s sparking a broad retreat from risk.
Bitget’s Chief Analyst Ryan Lee says Bitcoin could fall to $70,000 soon. Ethereum might go lower too, unless macro conditions improve. If the Fed cuts rates in May and liquidity returns, there could be a rebound. But until then, the bears have momentum.
Crypto is entering a tough stretch. Investors are watching closely—but for now, most are standing on the sidelines.
