Ethereum News: ETH Drops 10% Amid Declining Whale Activity and Bearish Market Sentiment

In a significant market movement, Ethereum (ETH) has undergone a notable decline, shedding nearly 10% of its value on February 25, 2025. This drop has resulted in its market capitalization dipping below the $295 billion mark for the first time since November 2024. Here`s a closer look at the factors behind this decline and what it means for the future of Ethereum.

Ethereum (ETH) Falls 10% as Whale Activity Declines

Ethereum (ETH) has experienced a significant drop of nearly 10% on February 25, 2025, pushing its market capitalization below the $295 billion mark for the first time since November 2024. The decline in price has been driven by a combination of factors, including bearish sentiment in the broader crypto market, reduced whale activity, and oversold technical indicators. Several technical indicators are signaling a continued bearish outlook for Ethereum, with the RSI dropping to 29, entering oversold territory.

Ethereum`s Supply Burn Drops in 2024; Uniswap Dominates Usage

Despite high fee spending, Ethereum`s supply burn decreased in 2024. Uniswap-related contracts emerged as the most frequently used smart contracts, highlighting the growing demand for on-chain trading. Fees spent on stablecoin movements and decentralized exchange (DEX) usage surpassed those of simple ETH transfers, solidifying Ethereum`s role as a financial settlement layer. Additionally, Ethereum`s gas price correlation with its market price weakened, potentially signaling a shift in user behavior.

Ethereum Under Sell Pressure as Whales Dump ETH and ETFs See Outflows

Spot Ethereum ETFs have recorded $94.3 million in net outflows, with BlackRock leading the outflows at $69.7 million, followed by Fidelity with $18.3 million and Grayscale with $3 million. This, coupled with increasing whale activity, has put Ethereum under sell pressure. Over the past week, total net outflows have reached $222 million. ETH has dropped 5% in the last 24 hours, trading at $2,340. 24-hour liquidations have totaled $127.93 million, and Ethereum’s total value locked has fallen to $51.5 billion, the lowest level since November 2024.

Ethereum Foundation Donates $1.25M to Support Alexey Pertsev

With increasing regulatory scrutiny in crypto, the Ethereum Foundation has donated $1.25 million to assist Alexey Pertsev, a developer of Tornado Cash, with legal defenses. The foundation emphasized that writing codes shouldn’t be criminalized as privacy is a basic right. This donation underscores Ethereum’s dedication to safeguarding developers and supporting decentralized technologies under government scrutiny.