Ethereum
Bad Decisions By Ethereum Foundation Hurt ETH Price: CIO
Zaheer Ebtikar, the Chief Investment Officer (CIO) and founder of Split Capital—a hedge fund specializing in liquid token investments—has attributed the Ethereum underperformance over the last months to strategic missteps by the Ethereum Foundation and structural shifts in crypto capital flows. In an analysis shared via X (formerly Twitter), Ebtikar writes, “Independent of the myriad of (probable) bad decisions that the ETH foundation & co have made there’s another structural reason why ETH has traded like a dog this cycle.”
Why Is The Ethereum Price Lagging Behind?
Ebtikar began by emphasizing the importance of understanding capital flows within the crypto market. He identified three primary sources of capital flow: retail investors who engage directly through platforms like Coinbase, Binance, and Bybit; private capital from liquid and venture funds; and institutional investors who invest directly through Exchange-Traded Funds (ETFs) and futures. However, he noted that retail investors are “hardest to quantify” and are “not fully present in the market today,” thus excluding them from his analysis.
Focusing on private capital, Ebtikar highlighted that in 2021, this segment was the largest capital base, driven by crypto euphoria that attracted more than $20 billion in net new inflows. “Fast forward to today, private capital is no longer the heavy hitter capital base as ETFs and other traditional vehicles have taken the role of the largest net new buyer of crypto,” he stated. He attributed this decline to a series of poor venture investments and overhang from prior cycles, which have “left a bad taste in the mouths of LPs.”
These venture firms and liquid funds recognized that they couldn’t wait out another cycle and needed to be more proactive. They began taking more “shots on target” for liquid plays, often through private deals involving locked tokens such as Solana (SOL), Celestia (TIA), and Toncoin (TON). “These locked deals also represented something more interesting for a lot of firms—there’s a world outside of Ethereum-based investing that is actually growing and usable and has enough market cap growth relative to ETH that could justify the underwriting of the investment,” Ebtikar explained.
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He noted that investors were aware it would be increasingly difficult to raise funds for venture and liquid investments. Without the return of retail capital, institutional products became the only viable avenue for a bid for ETH. Mindshare began fragmenting as the three-year mark of the 2021 vintage approached, and products like BlackRock’s spot Bitcoin ETF (IBIT) gained legitimacy as the de facto benchmark for crypto. Private capital had to make a choice: “Abandon their core portfolio hold in ETH and move down the risk curve or hold your breath for traditional players to start bailing you out.”
This led to the formation of two camps. The first consisted of pre-ETF ETH sellers between January and May 2024, who opted out of ETH and swapped to assets like SOL. The second group, post-ETF ETH sellers from June to September 2024, realized that ETF flows into ETH were lackluster and that it would take much more for ETH’s price to gain support. “They understood that the ETF flows were lackluster and it would take a lot more for ETH price to begin being supportive,” Ebtikar noted.
Turning his attention to institutional capital, Ebtikar observed that when spot Bitcoin ETFs like IBIT, FBTC, ARKB, and BITW entered the market, they exceeded expectations. “These products broke any realistic target investors and experts could’ve fathomed with their success,” he stated. He emphasized that Bitcoin ETFs have become some of the most successful ETF products in history. “BTC went from being a dog in the average portfolio to now the only funnel for net new capital in crypto and at a record rate too,” he said.
Despite Bitcoin’s surge, the rest of the market didn’t keep up. Ebtikar questioned why this was the case, pointing out that crypto-native investors, retail, and private capital had long since reduced their Bitcoin holdings. Instead, they were “stuck in altcoins and Ethereum as the core of their portfolio.” Consequently, when Bitcoin received its institutional bid, few in the crypto space benefited from the new wealth effect. “Few in crypto were beneficiaries of the newly made wealth effect,” he remarked.
Investors began to reassess their portfolios, struggling to decide their next moves. Historically, crypto capital would cycle from index assets like Bitcoin to Ethereum and then down the risk curve to altcoins. However, traders speculated on potential flows into Ethereum and similar assets but were “broadly wrong.” The market started to diverge, and the dispersion between asset returns intensified. Professional crypto investors and traders moved aggressively down the risk curve, and funds followed suit to generate returns.
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The asset they chose to reduce exposure to was Ethereum—the largest asset in their core portfolios. “Slowly but surely ETH started losing steam to SOL and similar, and a non-trivial percentage of this flow started really moving downstream to memecoins,” Ebtikar observed. “ETH lost its moat in crypto-savvy investors, the only group of investors who were historically interested in buying.”
Even with the introduction of spot ETH ETFs, institutional capital paid little attention to Ethereum. Ebtikar described Ethereum’s predicament as suffering from “middle-child syndrome.” He elaborated, “The asset is not in vogue with institutional investors, the asset lost favor in crypto private capital circles, and retail is nowhere to be seen bidding anything at this size.” He emphasized that Ethereum is too large for native capital to support while other index assets like SOL and large caps like TIA, TAO, and SUI are capturing investor attention.
According to Ebtikar, the only way forward is to expand the universe of potentially interested investors, which can only happen at the institutional level. “ETH’s best odds of making a material comeback (short of changes to the core protocol’s trajectory) is to have institutional investors pick up the asset in the coming months,” he suggested. He acknowledged that while Ethereum faces significant challenges, it is “the only other asset with an ETF and likely will be for some time.” This unique position offers a potential avenue for recovery.
Ebtikar mentioned several factors that could influence Ethereum’s future trajectory. He cited the possibility of a Trump presidency, which could bring changes to regulatory frameworks affecting cryptocurrency. He also pointed to potential shifts in the Ethereum Foundation’s direction and core focus, suggesting that strategic changes could reinvigorate investor interest. Additionally, he highlighted the importance of marketing the ETH ETF by traditional asset managers to attract institutional capital.
“Considering the possibility of a Trump Presidency, change at the Ethereum Foundation’s direction and core focus, and marketing of the ETH ETF by traditional asset managers, there are quite a few outs for the father of smart contracting platforms,” Ebtikar remarked. He expressed cautious optimism, stating that not all hope is lost for Ethereum.
Looking ahead to 2025, Ebtikar believes it will be a critical year for cryptocurrency and especially for Ethereum. “2025 will very much be an interesting year for crypto and especially for Ethereum as so much of the damage from 2024 can be unwound or further deepened,” he concluded. “Time will tell.”
At press time, ETH traded at $2,534.
Featured image created with DALL.E, chart from TradingView.com
Comparing current price action with past performances, Ethereum, the second-largest crypto asset, seems to have witnessed its worst-ever first quarter as it draws closer to its end. However, many investors are expressing interest in ETH’s prospects again, purchasing the asset in huge chunks.
Investors Buying The Ethereum’s Price Dip
Ethereum has continued to struggle to undergo a major upward move even as other digital assets make history in the ongoing market cycle. Despite the recent pullback in ETH’s price, Ali Martinez, a seasoned crypto analyst and trader, has highlighted a renewed bullish sentiment among investors.
Specifically, investors are seizing the opportunity to stack up on ETH in light of ongoing price correction, signaling interest and confidence in the asset’s long-term potential. This buying activity suggests that seasoned traders are considering the current drop as a strategic entry or buying point.
According to Ali Martinez, the development was spotted as Ethereum encountered a significant resistance wall between the $2,200 and $2,580 price mark. Examining the data from IntoTheBlock, the expert reported that over 12.43 million investors purchased a massive portion of 66.18 million ETH within the $2,200 and $2,580 price zones.
These kinds of accumulation show that both retail and institutional investors are hopeful about the market. Should this substantial buying activity extend, Ali Martinez is confident that bullish momentum might build up for ETH, leading to a break above the zone.
Market analyst and trader CryptoELITES predicts a robust upswing for ETH to new all-time highs in the upcoming weeks. CryptoELITES prediction is based on past price trends in which ETH witnessed a massive rally after a lengthy period of downward movements.
Delving into the recent price action, the expert believes ETH’s correction has reached a bottom similar to the 2017 and 2021 bull market cycles. With the altcoin potentially reaching a bottom, CryptoELITES anticipates an over 700% upsurge in 2025.
A 700% surge will bring the altcoin’s price to the $15,000 milestone before the ongoing bull market cycle completes. Given that Ethereum is mirroring past trends, a possible price reversal could be on the horizon.
ETH Eyeing A Breakout From Key Chart Pattern
While ETH is facing volatility, it is presently at a critical junction that might determine its next move. Jonathan Carter, a crypto and technical analyst, reveals that Ethereum is holding above the lower boundary of a Descending Triangle formation after navigating its price in the 4-hour time frame.
At this zone, the asset might muster enough momentum for a rebound. Carter expects a bounce from the current support zone to push ETH toward key resistance levels at $1,950, $2,080, $2,230, and $2,320. However, if the altcoin falls below the support, the price may drop further to the downside.
Featured image from Pexels, chart from Tradingview.com
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The Ethereum price has finally broken out of a months-long consolidation pattern, signaling the possible start of a significant bullish move. The recent breakout of an Ascending Triangle formation suggests that ETH is set for more gains, with a crypto analyst suggesting a price target of $7,800 in the coming months.
Ethereum Price Targets $7,700 ATH
The Ethereum price is believed to be targeting a new all-time high of $7,800 after its recent breakout from an Ascending Triangle. For months now, the cryptocurrency has been trading within this classic bullish chart pattern, where prices make higher lows while facing strong resistance at a fixed level.
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This consolidation pattern has been active since late 2024, establishing strong resistance at $4,000. TradingView analyst Sohaibfx has predicted that if Ethereum can surpass this resistance level, it would confirm a bullish trend, leading to a strong upward continuation in its price.
Looking at the analyst’s price chart, Ethereum spent several months navigating between $2,000 and $4,000 in Q1 2025. This region represented an accumulation phase where buyers had quietly built their positions in anticipation of a potential rally.
A descending channel marked in orange in the price chart also shows that Ethereum had experienced a significant pullback mid-to-late 2024 before breaking out. This was likely the final shakeout before it regained its bullish momentum.
According to Sohaibfx, a measured move of the Ascending Triangle suggests that Ethereum is poised for an explosive 333% surge to $7,800. This bullish target is calculated by determining the height of the triangle, which is the difference between its base at $2,000 and resistance level at $4,000.
When the price breaks above the resistance, the common method for estimating the possible next move is to add the triangle’s height to the breakout point, which gives a technical target of $6,000. However, based on past price behaviour and strong buying momentum, the Ethereum price could push even higher, with $7,800 being a key psychological level.
Support Levels And Momentum Indicators To Watch
In his price analysis, Sohaibfx has pinpointed the $4,000 and $3,000 price levels as support levels for Ethereum. This support should act as a safety net, where buyers are likely to step in to prevent further decline after Ethereum reaches its projected $7,800 target.
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Moving forward, the analyst highlights key momentum indicators that should be monitored. While the analyst’s chart does not specify indicators like Moving Average Convergence Divergence (MACD) or Relative Strength Index (RSI), Ethereum’s sharp upward move suggests that strong momentum will be a major contributor to its rise to a new ATH.
Sohaibfx has advised traders to watch out for RSI levels above 70, as overbought conditions could signal a potential pullback while Ethereum approaches higher levels.
Featured image from Adobe Stock, chart from Tradingview.com
They say journalists never truly clock out. But for Christian, that’s not just a metaphor, it’s a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.
Christian’s journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).
Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling – right up his alley!
So, he landed a killer gig at NewsBTC, where he’s one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).
Think Christian’s all work and no play? Not a chance! When he’s not at his computer, you’ll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.
Speaking of chill, Christian’s got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.
Here’s the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day – and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.
Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors – and bosses – he deeply respects.
So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.
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