Ethereum’s Crucial Support Level

Ethereum sits at a crucial support level as demand for spot exchange-traded funds wanes on Wall Street.

Ethereum (ETH), the second-biggest crypto, has stagnated at $2,100 in the past few days. This price is about 47% below the highest level in December and 45% lower than where it was in the same period last year.

Data shows that Wall Street investors have continued to dump assets. According to SoSoValue, all Ethereum ETFs shed $120 million in assets last week after losing $335 million a week earlier — totaling $455 million.

The net inflow in these Ethereum ETFs is $2.7 billion, much lower than Bitcoin’s (BTC) $37 billion.

Weak Inflow Trends

A likely reason for the weak inflow trends is that Ethereum has dropped and underperformed other cryptocurrencies since 2024.

Further, Ethereum ETFs do not allow staking, where investors generate a return by delegating their tokens to secure the network. Data by StakingRewards shows that Ethereum yields about 3.25%. Ethereum coins worth over $73 billion have been staked.

Challenges in the Crypto Market

Ethereum has also faced more challenges. It is no longer the most profitable player in the crypto industry, as its 2025 fees stood at $202 million, lower than fees from other networks like Jito (JTO), Uniswap (UNI), Tron (TRX), and Solana (SOL).

Ethereum’s network is facing substantial competition from popular layer-1 blockchains like Solana and BNB, as well as layer-2s like Base and Arbitrum.

Ethereum Price Technical Analysis

The daily chart shows that the ETH price has been in a strong downward trend in the past few months, dropping from a high of $4,105 in November last year to $2,160.

The current Ethereum price is crucial, as it hovers slightly above the critical support level at $2,000. This level is significant; it was not breached in August and September last year. Most importantly, this price is at the neckline of a triple-top chart pattern. Losing this support level could indicate further downward momentum, with the next point of interest being the psychological level of $1,500.

Read more: BTC, ETH, XRP, altcoin prices at risk: Nasdaq 100 loses key support