Ethereum Faces a Pivotal Moment: Could ETH Drop to $1,250?

Ethereum, the king of altcoins, has turned out to be one of the weakest performers in the latest 2024/2025 bull run, when many assets, including Bitcoin, rose to new highs. Recently, the problems of ETH have escalated, as its price has fallen below $1,800 – the lowest since November 2018 – and experts are wondering whether it will be able to reach $1,250.

Look back to 2021 and Ethereum was on the peak of optimism, moving up towards $5,000 and discussing the possibility of the so-called “flippening” – the situation when it can outperform Bitcoin, the leading cryptocurrency. Three and a half years later, that dream seems like a pipe dream, as improbable as fiat money becoming disinflationary. After falling to less than $1,000 in the bear market of 2022, ETH rose again in 2024, only to fail to climb above $4,000. Its most recent attempt was rejected in mid December and the price started to trend down.

This week the decline continued and the low was seen, with ETH trading below $1,800. The drop erased all the gains made after Trump’s presidential victory and took the asset to the levels seen Nov 2023. One of the most popular crypto analysts on X, Ali Martinez, with more than 130k followers, stated that the breakout from a multi-year parallel channel is a bearish signal and the asset may decline to $1,250, the price last seen over two years ago.

However, the options of Ethereum whales have been rather interesting this week. CryptoPotato noted their positive balance, which included the purchase of 1.1 million ETH, or almost 1% of the total supply, within 48 hours, which was worth over $2 billion at the time. Martinez also pointed out that these big fishes bought another 420,000 ETH within the next 5 days, which is worth approximately $800 million at the time of writing. These are usually positive signs and often indicate that the supply is balanced or even deficient relative to demand, which should help support prices. Nevertheless, ETH has not yet been able to climb back above $2,000 and there is still no indication of a turnaround.