At the end of February 2025, Ethereum $2,212 plunged to $2,200, marking a 33% decrease. This decline is attributed to a cautious approach from traders and heightened selling pressure, which deepened the losses in the cryptocurrency market. Factors like macroeconomic uncertainty and a shift towards alternative investments contributed significantly to Ethereum’s depreciation.
Price Drop and Market Impacts
Ethereum was trading at $3,200 at the start of the month. However, it fell to $2,220 over February due to intensified selling pressure. Experiencing a weekly loss of 22%, Ethereum faced additional strain from dwindling investor interest.
Institutional Capital Outflows and Technical Data
The withdrawal of institutional investors from Ethereum ETF funds created significant market volatility. Over the past week, capital outflows exceeded $300 million, with a notable withdrawal of $94.3 million on February 26, highlighting the selling pressure on Ethereum.
Technical analyses indicate that Ethereum is trading near a critical support level. The price movement, hovering around the lower band of the Donchian channel, suggests weak buying interest in the market. The RSI indicator has dropped to 29.53, signaling an entry into the oversold zone. Maintaining the $2,200 support level is deemed crucial, as falling below this threshold could escalate overall market risk perception.
In this uncertain environment, investors are leaning towards diversification strategies for their portfolios. Developments in alternative projects and market dynamics directly influence capital flows. The future performance of Ethereum will largely depend on ongoing market risks.