Ethereum Faces Make-or-Break Moment as Analyst Warns of Downside Risk Without Strong Rally

Bloomberg’s Eric Balchunas throws cold water on ETH’s recent gains—says the smart contract giant needs sustained momentum to avoid trouble.

Market watchers eye key resistance levels as institutional flows show tentative interest. But let’s be honest—when has crypto ever followed traditional finance logic?

The clock’s ticking for Ethereum to prove it’s more than just gas fee headlines and NFT hangovers.

In brief

• Ethereum ETFs struggle to attract flows without a sustained bullish rally, despite a possible staking approval.
• Since December 2024, ETH price has dropped 56%, strongly impacting ETF inflows.
• A massive influx of 2.6 billion dollars occurred in December, but momentum quickly faded.
• Vitalik Buterin launches an emergency plan focused on security, decentralization, privacy, and decentralized infrastructure.
• If the plan fails, Charles Hoskinson predicts Ethereum will disappear by 2040.

Ethereum ETFs in Search of a Second Wind

Since their launch in the United States in July 2024, Ethereum ETFs have not enjoyed the same enthusiasm as their Bitcoin counterparts. The cause: disappointing performance from the network’s native crypto, Ethereum. For Eric Balchunas, ETF analyst at Bloomberg, staking, even if authorized, will have only a “limited impact” without a genuine rally.

“It is an option that can help, but it will not be enough to reverse the trend,” he explained in the New Era Finance podcast on April 29. Currently, the SEC has not yet given the green light to allow Ether ETFs to offer staking, a decision that could come between May and October.

Ethereum: a rally of several months, or nothing

Eric Balchunas points out the absence of prolonged bullish momentum. After a peak at $4,107 on December 16, 2024 — thanks to a rally triggered by Donald Trump’s election victory — Ethereum plunged 56%, falling to around $1,809 by the end of April 2025. As a result, capital inflows into ETFs dropped as quickly as they had risen.

Yet, between November 22 and December 10, 2024, these ETFs recorded 2.6 billion dollars in net inflows! But this momentum quickly faded. So, to rekindle investor interest, Balchunas believes that “a strong real narrative” combined with a prolonged rise is needed. As it stands, Ethereum still seems far from achieving this.

The solution in Vitalik Buterin’s hands?

Facing existential threats weighing on Ethereum, Vitalik Buterin is deploying a true emergency plan for 2025. His priorities: strengthening network infrastructure with instant finality, security at all levels, privacy, and decentralization. Moreover, he promotes a global decentralized ecosystem, ranging from DAOs to decentralized AI, as well as Web3 social networks.

Goal: to maximize a “meaningful” use of Ethereum and its technical and social resilience. But if this strategy fails, Charles Hoskinson predicts nothing less than the extinction of Ethereum… within the next 15 years.

Ethereum is thus playing for its survival over the coming years. Without a durable rebound or significant adoption of its CORE values, even ETFs and staking will not suffice. Vitalik Buterin’s plan is clear, but failure could mark the end of a crypto giant by 2040.

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