ETH Price Predictions: Can Ethereum Recover and Break $2,500 in 2025?

ETH Price Predictions: What’s Behind Ethereum’s Struggle to Regain Bullish Momentum?

ETH Price Predictions – Ethereum’s ETH price recently dropped below the $2,600 mark on February 24, and it has since struggled to regain significant momentum. In the 15 days following this dip, ETH faced over $918 million in leveraged long liquidations in futures markets, as reported by CoinGlass. Currently trading around $1,909, Ethereum is facing difficulty breaking the $2,500 level, underperforming the broader altcoin market by approximately 10%.

Ethereum’s Network Upgrades and Increased Competition

A major point of concern for investors is Ethereum’s upcoming Pectra upgrade, which many feel may not significantly improve the network. While Ethereum is expected to lower transaction fees and enhance usability, there is growing skepticism about the network’s ability to remain competitive. Additionally, interoperability issues across layer-2 solutions persist, which limits both liquidity and accessibility for users. On top of that, reports of empty blocks on Ethereum’s testnet have added to the market’s negative sentiment.

Ethereum’s competitors, like Solana (SOL), are gaining ground. Solana has seen notable growth, with its market capitalization hitting $123.37. Furthermore, the rise of modular layer-1 solutions, such as Berachain, which focuses on DeFi integration, is capturing significant attention, with over $3 billion in total value locked (TVL).

Weak Onchain Activity and Institutional Hesitance

Institutional demand remains weak, as evidenced by negative ETF flows in 9 out of the last 10 trading days, amounting to $406 million in withdrawals. While some analysts believe that the eventual approval of native staking on Ethereum ETFs could drive demand, the supply of ETH is growing at 0.7% annually, causing inflationary concerns. Lower blockchain processing demand has led to a reduction in Ethereum’s burn-fee mechanism, further fueling inflationary pressures.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.