Ethereum (ETH) has been facing significant challenges as the broader crypto market continues to struggle. Trading around $1,840.54, the second-largest cryptocurrency by market capitalization has seen a noticeable downturn recently. In the last week of March 2025, Ethereum dropped more than 9%, signaling a tough road ahead. A wider bearish trend in the market, spurred by losses in both the Chinese and Japanese stock markets, is making investors uneasy.

Ethereum Faces Pressure from ETF Outflows

One of the more alarming developments for Ethereum is the substantial outflow from U.S. spot Ether ETFs. As of March 2025, the outflows have reached $409 million, the largest monthly net cash outflow since October 2024. The movement away from Ethereum-based ETFs reflects growing skepticism and fear of further market volatility.

Additionally, on-chain data has revealed concerning signs from major whales in the Ethereum market. One whale deposited 6,131 ETH, worth around $10.94 million, into the Binance exchange, further fueling concerns that large investors are looking to offload their holdings. Another whale, who had leveraged a $110 million long position on MakerDAO, faces the threat of liquidation if ETH drops to $1,793.

Risk of Deeper Selloff

Ethereum’s price remains under pressure, with a key level of support now at $1,793. If this level is breached, Ethereum could face a significant liquidation event. The price action over the past few months has shown that Ethereum is struggling to maintain momentum, especially after reaching a high of $4,105 last year. Despite brief periods of recovery, Ethereum’s price has been trapped in a bearish cycle, confirming a broader negative market trend.

Ethereum’s performance also remains closely tied to the sentiment in the wider cryptocurrency market. As investors increasingly turn to gold and stablecoins, fearing more volatility in the digital asset space, Ethereum faces a considerable uphill battle. This capital flight may weaken Ethereum’s price further, pushing it toward a deeper correction.

What’s Next for Ethereum?

Looking ahead, Ethereum’s price could continue to experience volatility in the short term. If the market fails to stabilize, a dip below $1,793 could trigger further selling, with some analysts predicting a potential drop to the $1,500 region. Additionally, the broader economic situation, including upcoming geopolitical events such as the U.S. tariff changes, could worsen market conditions, leading to even more cautious investor behavior.

Despite these negative trends, there is a glimmer of hope for Ethereum in the long term. The cryptocurrency continues to be a dominant force in the blockchain space, and updates to its ecosystem, such as the transition to Ethereum 2.0, may eventually drive renewed interest. However, for now, Ethereum’s outlook remains uncertain, and the next few months will be critical in determining whether it can break out of its current slump or face a more significant crash.

In conclusion, Ethereum’s future in 2025 appears challenging, as both macroeconomic factors and investor sentiment push it toward more bearish territory. If Ethereum can hold above the crucial $1,793 support, there might still be hope for a recovery. However, a further decline seems likely without major bullish catalysts in the near future.