$ETH Macroeconomic Factors
Federal Reserve Policies: If the U.S. Fed raises interest rates or maintains tight monetary policy, risk assets like ETH may decline.
Economic Recession: A global economic downturn could reduce investor appetite for cryptocurrencies.
Strong U.S. Dollar (DXY): A rising DXY often pressures crypto prices downward.
2. Crypto-Specific Risks
Bitcoin (BTC) Bearish Trends: ETH often follows BTC’s price movements. If Bitcoin enters a bear market, Ethereum likely will too.
Regulatory Crackdowns: Stricter regulations (e.g., SEC classifying ETH as a security) could trigger a sell-off.
Competitor Outperformance: If Layer 1/Layer 2 competitors (Solana, Cardano, etc.) gain more traction, ETH could face selling pressure.
3. Ethereum Network Issues
High Gas Fees: If network congestion returns, users may flee to cheaper alternatives.
Staking Unlocks & Sell Pressure: Large amounts of unstaked ETH hitting the market could increase supply and lower prices.
Failed Upgrades: If future Ethereum upgrades (e.g., "Dencun," "Prague") face delays or bugs, confidence could drop.
4. Historical Bearish Periods
2018 Bear Market: ETH fell from ~1,400to 1,400to 80 (post-ICO bubble burst).
2022 Bear Market: ETH dropped from ~4,800(Nov2021)to 4,800(Nov2021)to 880 (June 2022) due to Fed rate hikes, Terra/LUNA collapse, and FTX crash.