Why ETH is Dumping ?
Ethereum (ETH) has experienced a significant price decline recently, dropping over 60% from its December 2024 peak of $4,100 to approximately $1,576 as of April 16, 2025 . This downturn is attributed to several key factors:
1. Macroeconomic Factors:
The introduction of new tariffs by U.S. President Donald Trump has created uncertainty in global markets, leading investors to move away from riskier assets, including cryptocurrencies like Ethereum .
2. Ethereum Foundation’s ETH Sales:
The Ethereum Foundation has sold 300 ETH in 2025, including a recent sale of 100 ETH for 307,893 DAI at an average price of $3,078.93 . While these sales are relatively small compared to the Foundation’s holdings of 269,175 ETH, they have coincided with price drops, leading to community criticism .
3. DeFi Liquidations:
A sharp decline in ETH’s price triggered over $257 million in liquidations in Ethereum’s derivatives market within a 48-hour period, contributing to further downward pressure .
4. Bitcoin’s Price Influence:
Ethereum’s price movements are often influenced by Bitcoin’s performance. A recent drop in Bitcoin’s price below $86,000 led to a broader market decline, affecting ETH as well .
These combined factors have contributed to Ethereum’s recent price decline.
What do You think about this will ETH will pump again?
