Ethereum (ETH) is grappling with a significant downturn, with the cryptocurrency suffering a 51.3% drop in value since the start of 2025. This sharp decline is being driven by intensified whale activity, where large ETH holders continue to sell off large portions of their holdings, exacerbating downward pressure on the price. As Ethereum faces these challenges, the market sentiment surrounding ETH remains increasingly bearish, raising concerns among investors and analysts about the future trajectory of the altcoin.

Whale activity has become a critical factor in Ethereum’s struggles. According to recent data, there has been a noticeable increase in large Ethereum holders offloading their assets. For instance, on April 14, a whale deposited 20,000 ETH worth approximately $32.4 million onto the Kraken exchange, likely signaling an intention to sell further. This particular whale still holds a significant amount of Ethereum, with 30,874 ETH left in its wallet, equating to $50.7 million in value. Additionally, another long-term holder from the 2015 ICO has been actively selling ETH, offloading 632 ETH worth about $1 million in a single transaction. This continuous selling behavior highlights a growing trend among large Ethereum investors, further contributing to the downward pressure on the price.

This sell-off pattern is coupled with a broader decline in high-net-worth Ethereum holders. Glassnode data reveals a sharp drop in the number of addresses holding at least $1 million in ETH. In fact, this figure has decreased to levels not seen since January 2023, reflecting waning confidence among the wealthiest Ethereum investors. This trend is particularly alarming, as it points to a broader lack of investor interest and belief in Ethereum’s price performance.

Adding to the complexity of the situation, dormant whales who had not interacted with their Ethereum holdings for years are now starting to sell. One such whale, which withdrew 3,019 ETH from HTX between August and December 2020, made its first deposit of 1,000 ETH to Binance on April 11, with another 1,000 ETH moved on April 13. Although this particular whale has only a small portion of its initial holdings left, the reactivation of dormant accounts adds to the overall market uncertainty, as it suggests that even long-term holders are now liquidating their assets in response to Ethereum’s underperformance.

The broader market sentiment surrounding Ethereum is also concerning. Only 36.1% of Ethereum addresses are currently in profit, according to Glassnode. This statistic further emphasizes the difficulty many holders are facing as the value of ETH remains well below previous highs. Despite the recent recovery in price, Ethereum’s current position remains fragile, and the continued lack of investor inflows only adds to the pessimism.

Some analysts have compared Ethereum’s current situation to the decline of Nokia in the late 2000s, suggesting that Ethereum could face increasing competition from faster and more scalable platforms such as Solana (SOL). While Ethereum’s dominance in the cryptocurrency space has been solid for years, there are concerns that its slow adoption of new technologies and high gas fees could lead to a loss of market share.

However, not all analysts are pessimistic. Many continue to believe in Ethereum’s potential for recovery, citing upcoming technological upgrades and the market’s potential undervaluation of ETH. Despite the current struggles, Ethereum remains a dominant player in the decentralized finance (DeFi) and smart contract space, and its ongoing developments, including the transition to Ethereum 2.0, could offer a pathway to regain investor confidence and reverse the current downtrend.

In conclusion, Ethereum’s ongoing struggles in 2025 highlight the significant influence of whale sell-offs and investor sentiment on the price. While some analysts see potential for recovery, the future remains uncertain, and Ethereum must contend with both internal challenges and external competition to maintain its position in the market. The next few months will be critical in determining whether Ethereum can regain its momentum or if further declines are imminent.