$ETH 5 bearish fundamentals for ETH that threaten to send it to $1,000

The price of ETH is currently trading at $1,635, with daily gains of 2.8%, weekly gains of 2.6%, and monthly losses of 17.1%. However, today we will conduct a deeper analysis to understand the poor performance of this crypto asset.

The second largest cryptocurrency continues to be affected by negative fundamentals, with strong declines and analysts even pointing to levels as low as $1,000. This outlook is reflected in its market dominance, which is close to historical lows:

1. The theft of 500,000 ETH by Bybit

A few months ago, the platform was the victim of an attack that resulted in the theft of nearly 500,000 ETH, valued at approximately $1.3 billion. The attackers quickly converted the funds to BTC through DEX platforms, exerting strong selling pressure.

As a result, ETH fell nearly 25% in two weeks, from $2,800 to $2,100.

However, some analysts believe that this drop, combined with the decline from over $4,000 in December, could be a sign of more serious structural problems.

2. ETH loses market share to other blockchains

Ethereum no longer leads the smart contract sector as it once did. Its user share has decreased, the number of active developers is lower, and gas fees remain high. This has weakened its position against competitors like Solana, TRON, and BNB Chain.

3. Macroeconomic factors

The global economy has been affected by the tariff measures of President Donald Trump, which have triggered tensions with partners like China, the European Union, and Canada. This trade war has created an environment of uncertainty that also impacts the crypto market.

The volatility generated by these factors has particularly impacted assets like ETH, causing declines in demand and increasing selling pressure.

Following the death of Pope Francis, speculative memecoins are emerging in the crypto ecosystem.

4. Unfavorable on-chain data

The main on-chain indicators are also not positive for Ethereum:

Open interest in ETH futures has fallen to $16.7 billion, 48% below the $32.3 billion reached in January.

Funding rates in derivatives have turned negative, reflecting a predominance of bearish bets.

5. Key technical levels in ETH charts

The price of Ethereum fell below the $1,500 line in recent weeks, a key level that served as support. This drop confirms that ETH continues to lag behind the rest of the cryptocurrency market.

Analysis of ETH charts.

Analysis of ETH charts. Source: TradingView.

Now, the two levels that will define the next direction of the market are as follows:

$1,767: key resistance that could confirm a recovery if surpassed.

$1,411: important support whose loss could lead ETH to $1,200.

The RSI is at 74 points, indicating a possible short-term reversal. However, negative fundamentals still weigh too heavily.

Conclusion

The outlook for Ethereum shows no clear signs of improvement. The decline in network activity, weakness in flows to ETFs, and the uncertain macroeconomic environment paint a challenging scenario.

As long as key indicators such as network usage and institutional demand do not improve, it is unlikely that ETH will achieve sustained recovery in the short term.