Analysts at Matrixport have shared information about the negative sentiment that has engulfed the Ethereum ecosystem. They pointed to a decline in activity and a decrease in demand for the cryptocurrency.
This is reported by Business • Media
Negative Trends in the Ethereum Market
Matrixport experts noted that the price of Ethereum has dropped by 50% since reaching a peak of $3668 on January 7, 2025.
“Activity in the Ethereum ecosystem has sharply slowed down, and due to weakening fundamentals and low demand for the asset, market sentiment is clearly negative,” said Matrixport in a statement.
Analysts also noted that the derivatives market predicts a potential price movement for Ethereum of 10% up or down by the end of next week, as several significant risk events approach.
Market Situation and Forecasts
Ethereum is gradually approaching levels seen during the bankruptcy of the cryptocurrency exchange FTX in November 2022. The main group of FTX creditors will begin receiving payments on May 30, 2025.
At the time of preparing this material, Ethereum is trading near the $1800 mark. Earlier, Cointelegraph noted that the price of Ethereum could rise to $3400 by June 2025, as the asset tests a key support zone that preceded significant increases of 2000% and 360%.