- Ethereum plunges 52.75% YTD with ETF outflows and falling network activity signaling deepening investor fear and usage decline.
- On-chain metrics show Ethereum trading below realized price as bearish pressure mounts and users migrate to faster Layer-1 alternatives.
- Vitalik Buterin proposes core upgrades to reduce validator costs and enhance Layer-1 usability amid Ethereum’s market downturn.
According to CryptoBusy, Ethereum continues to plunge in 2025, with the price hovering around $1,580. This marks a sharp decline of 5.31% in just 24 hours. Weekly and monthly losses stand at 12.16% and 15.47%, respectively. Over the past six months, Ethereum has dropped 35.37%.
Year-to-date losses have deepened to 52.75%, highlighting a severe correction. Additionally, the one-year performance shows a steep 55.03% fall. Despite the turmoil, Ethereum still boasts an 829.94% gain over five years. However, recent metrics paint a worrying picture. From ETF outflows to collapsing transaction activity, the market outlook grows bleaker. Traders now face strong downside pressure, with technical indicators suggesting a potential fall to $1,000.
On-Chain Metrics Show Deep Market Stress
Several on-chain indicators confirm a growing bearish sentiment around Ethereum. First, ETH is trading below its realized price. Historically, this has preceded 35% to 51% drawdowns. Moreover, $94.1 million has flowed out of Ethereum ETFs over just two weeks. Consequently, investor confidence appears to be weakening fast. Besides that, negative funding rates reflect that bears maintain control of the market.
Additionally, network activity has plunged by 33%. Users are increasingly turning to competing Layer-1 chains. Ethereum’s transaction count also nosedived 40.5%. These drops underline reduced user engagement. More importantly, they point to migration toward faster and cheaper alternatives. As bearish momentum accelerates, bulls struggle to reclaim control. Hence, a possible test of the $1,000 zone remains on the table before any real rebound occurs.
Buterin Pushes Core Improvements Amid Scalability Concerns
Despite market pressure, Vitalik Buterin continues to refine Ethereum’s Layer-1 roadmap. Recently, he proposed core upgrades to ease reliance on Layer-2 scaling. His “statelessness” concept aims to cut validator hardware requirements. Consequently, Ethereum could become lighter and easier to run.
Moreover, Buterin stresses improving Layer-1 usability. These enhancements aim to lower transaction costs without sacrificing decentralization. They could help users in emerging regions who lack strong hardware and connectivity. By reducing technical and financial barriers, Ethereum could regain lost momentum. However, upgrades may take time to offset current market weakness.
