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Ethereum (ETH) has lost more than half its peak value in nine months, and the buyers who normally step in to cushion the fall are nowhere to be found.<\/p>\n
According to on-chain analyst Easy On Chain, the current situation is particularly uncomfortable not just because of the price drop itself, but also due to a growing disconnect between the derivatives market and actual spot demand.<\/p>\n
In a market report published on May 21, Easy On Chain painted a bleak picture for Ethereum\u2019s broader structure, saying<\/a> the token has already entered a medium- to long-term bear phase after its market cap dropped from about $585 billion in August 2025 to around $255 billion this month.<\/p>\n Their report pointed to falling institutional participation as one of the clearest warning signs. Fund holdings, which stood above 7 million ETH in October 2025, have fallen toward the 5.5 million to 5.7 million range.<\/p>\n At the same time, the Coinbase Premium Index stayed negative throughout May, suggesting US-based institutional buyers have largely stepped away from the market.<\/p>\n Meanwhile, trading activity has also dried up, as, according to Easy On Chain, daily fund trading volume has fallen well below the yearly average, dropping into a range between $17 million and $42 million in recent months.<\/p>\n The analyst described the current market as a phase where \u201cfutures-driven optimism accumulates without solid spot support.\u201d<\/p>\n That disconnect is becoming more visible in price action, considering the world\u2019s second-largest crypto is down nearly 7% in the past week, more than 9% across the last month, and about 17% over one year, according to CoinGecko data.<\/p>\n It is also sitting more than 57% below its all-time high of nearly $4,950, which was reached in August 2025.<\/p>\n Several commentators on X argued the chart still looks weak despite Bitcoin reclaiming levels above $78,000. One of them, Ted Pillows, wrote<\/a> that ETH \u201cstill can\u2019t reclaim the $2,150 level\u201d even while stocks and Bitcoin moved higher, adding that \u201cbig buyers aren\u2019t interested at all.\u201d<\/p>\n On his part, Benjamin Cowen said Ethereum may revisit its April 2025 lows near its lower logarithmic regression trend line, while analyst Cryptorphic warned<\/a> that the asset breaking below a rising support trend line would open the door for a move toward the $2,050 area.<\/p>\n The macro backdrop has not helped. In a post on May 18, Bitmine Chairman Tom Lee attributed<\/a> part of Ethereum\u2019s weakness to rising oil prices, citing what he described as the highest ever inverse correlation between ETH and crude oil.<\/p>\n That same day, geopolitical pressure after US President Donald Trump issued warnings toward Iran sent Bitcoin to around $76,700 and triggered<\/a> over $660 million in liquidations across crypto markets, with ETH accounting for $256 million of that figure.<\/p>\n The post Analyst: Ethereum Facing Silent Crisis, Hit by 55% Drawdown With No Dip Buyers<\/a> appeared first on CryptoPotato<\/a>.<\/p>\n\nTechnicals Lean Bearish<\/h2>\n
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