Price Analysis
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    Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing - accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.

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Ethereum Price Prediction: ETH Nears 4-Year Low Against Bitcoin – $1.5K Crash Ahead?

  • currency-symbol ETH $ 1,622.58 (1.74%) top gainer
Story Highlights
  • Ethereum's price has significantly declined due to market uncertainty and ETF cash outflows.

  • Large whale trading activity with high leverage has caused liquidity issues and losses on trading platforms.

  • Despite its DeFi dominance, Ethereum faces continued bearish pressure and potential further price drops.

Ethereum’s price has been under strong bearish pressure for the past four months, weighed down by market uncertainty and the ongoing U.S. tariff wars. The large-cap altcoin, valued at around $224 billion with a 24-hour trading volume of $25 billion, has dropped more than 54 percent since December 2024.

Adding to the pressure, major investors have been pulling funds, and Ethereumโ€™s presence on exchanges is growing. But thatโ€™s not all – whale traders and high-leverage bets are shaking up the market, forcing platforms to take action.

Letโ€™s dive into the latest developments.

Ethereum Whales Cash Out

The Ethereum network has experienced a huge cash outflow in the past few weeks amid leadership change from the Ethereum Foundation. The U.S. spot Ether ETFs have recorded a net cash outflow of nearly $200 million in the past three weeks. 

Interestingly, even BlackRockโ€™s ETHA has been bleeding, whereby it recorded a net cash outflow of $11 million on Tuesday.

According to Coinglass data, Bitcoin miner reserves have been steadily declining and now hover around 1.92 million BTC. Meanwhile, Ethereumโ€™s supply on centralized exchanges has increased by about 81,397 ETH in the past 24 hours, bringing the total to approximately 15.01 million ETH.

Ethereum Whale Triggers Hyperliquid Losses

On Wednesday, a large Ethereum trader opened a long position of 175,179 ETH, worth about $335.6 million, on the Hyperliquid trading platform using 50x leverage. Soon after, the trader closed 14,945 ETH, worth $28.7 million, leaving 160,234 ETH, valued at around $306.8 million, still exposed to liquidation.

This trade resulted in a $1.86 million profit for the trader but caused Hyperliquidโ€™s liquidity provider (HLP) to take a $4 million loss in just 24 hours.

The incident raised concerns about high-leverage trades draining liquidity from the platform. If similar trades continue, Hyperliquidโ€™s liquidity pools could face serious pressure.

Hyperliquid Reduces Leverage Limits

To address these risks, Hyperliquid has lowered its leverage limits. Bitcoin’s maximum leverage has been reduced from 50x to 40x, while Ethereumโ€™s has been cut from 50x to 25x, aiming to prevent further liquidity strain.

Ethereum Struggles Against Bitcoin

Ethereum has been losing ground to Bitcoin for several years and is now retesting its lowest level since May 2020. Despite maintaining its position as the leading DeFi network, with over $45 billion in total value locked and a stablecoin market cap of more than $122 billion, its market outlook remains weak.

After closing below the key $2,100 support level in the past two weeks, Ethereum is at risk of further decline toward $1,500 unless a strong recovery reverses the trend.

With leverage restrictions in place and outflows mounting, Ethereum faces a defining moment in its market cycle.

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FAQs

Ethereum Price Prediction for Today

According to the Ethereum price analysis conducted by our expert panel, Ethereum’s price today could settle below $2,000.

Is Ethereum a Good Investment?

As the altcoin season begins, the short-term gains make Ethereum a lucrative buying option. However, the long-term promises of this programmable blockchain make it a viable long-term crypto investment.ย 

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