Ether faces risks of $1,800 correction amid ETF outflows

Ether (CRYPTO:ETH) continues to struggle with a prolonged downtrend, falling over 53% since December 2024, as macroeconomic concerns and mounting ETF outflows weigh on the cryptocurrency’s performance.

Analysts warn that Ether could face further declines, potentially reaching $1,800.

The decline began after Ether peaked above $4,100 on December 16, 2024.

Since then, global uncertainty surrounding U.S. import tariffs and trade war fears have dampened investor sentiment.

Bitfinex analysts attribute the lackluster performance partly to reduced builder activity on the Ethereum network due to high operating fees.

“We believe that for ETH, $1,800 will be a strong level to watch,” they noted.  

Adding to the challenges are continued outflows from U.S. Ether ETFs.

Stella Zlatareva from Nexo highlighted that ETH’s 20% price drop last week pushed it below the critical $2,200 trendline that had supported its recovery since 2022.

Sosovalue data shows Ether ETFs have entered their fourth consecutive week of net negative outflows, totaling $119 million last week alone.

Broader market conditions are also contributing to Ether’s struggles.

Cryptocurrencies and global financial markets are undergoing a “macro correction,” according to Aurelie Barthere of Nansen.

She explained that this correction remains part of a bull market cycle but is influenced by tariff fears affecting risk assets.

Despite these challenges, long-term projections for Ether remain optimistic.

VanEck predicts a potential cycle top of $6,000 for ETH in 2025, driven by adoption and network upgrades like Ethereum’s upcoming PECTRA enhancement.

This upgrade aims to improve scalability and performance, further solidifying Ethereum’s position in decentralised finance.

While Ether faces immediate risks of correction to $1,800 due to macroeconomic pressures and ETF outflows, institutional optimism suggests the cryptocurrency could recover in the long term.

Investors are advised to monitor key support levels and external economic factors closely as the market navigates this period of volatility.

At the time of reporting, the Ethereum (ETH) price was $1,924.25.