Ethereum Falls Below $2,500 Amid Market Volatility on May 17

On May 17, 2025, Ethereum (ETH) saw its price drop to approximately $2,483.46, marking a decline of over 5% in the last 48 hours. The downturn reflects broader market volatility driven by multiple macroeconomic and technical factors.

A major contributor to the drop was the expiry of $3.2 billion in crypto options contracts, which sparked significant price swings across the market. As traders adjusted their positions, ETH fell below the critical $2,500 mark.

Adding to the bearish sentiment, Moody’s downgrade of the U.S. credit rating triggered a wave of risk-off behavior among investors. This led to a sell-off across various asset classes, including cryptocurrencies. Alongside Ethereum, tokens like Dogecoin and XRP also posted declines of around 3%.

Whale activity further intensified the downward momentum. A large holder sold 10,543 ETH, worth roughly $26.1 million, realizing a $2 million loss. This move signaled a lack of confidence among major investors and added selling pressure.

Technical analysts have pointed to a pattern of lower lows in ETH’s recent price movements, suggesting the possibility of further declines. Key support is currently seen around $2,350.

While some remain bullish on Ethereum’s long-term outlook, near-term sentiment remains cautious amid continued market uncertainty and macroeconomic headwinds.