Inverse Ethereum ETFs Surge as ETH Struggles Continue in Early 2025
Inverse Ethereum ETFs have emerged as the top performers in early 2025, capitalizing on Ethereum’s ongoing price struggles. The ProShares Ultrashort Ether ETF (ETHD) and T-Rex 2x Inverse Ether Daily Target ETF (ETQ) have delivered staggering year-to-date returns of 247.30% and 219%, respectively, according to Bloomberg data. These Leveraged products, which profit from Ethereum’s decline without directly shorting the cryptocurrency, highlight the persistent bearish sentiment surrounding ETH, which has seen its value drop by over 50% in the current market cycle. The strong performance of these inverse ETFs and leveraged short ETH futures underscores the challenges facing Ethereum as it continues to underperform in the crypto market.
Inverse ETH ETFs Top Performers in Early 2025
Ethereum’s struggles have pushed inverse ETH ETFs, ProShares Ultrashort Ether ETF (ETHD) and T-Rex 2x Inverse Ether Daily Target ETF (ETQ), to the top performance spot in early 2025. According to Bloomberg data, ETHD is up 247.30% YTD and ETQ is up 219% YTD. Leveraged short ETH Futures are also performing well this year. Although these ETFs do not directly short Ethereum, their high performance highlights the token’s struggles, with an over 50% decline YTD.
SEC Approves Ethereum ETF Options Trading
The U.S. Securities and Exchange Commission (SEC) has approved options trading for spot Ethereum [ETH] ETFs from BlackRock, Bitwise, and Fidelity. This update could attract more ETH investments, according to Nate Geraci of ETF Store. However, Bloomberg analyst James Seyffart stated that the outcome was expected.
Ethereum Price Analysis: Key Support Holds, but Drop to $1K Risk Remains
Ethereum’s price has seen a substantial downtrend, recently hitting the critical $1.5K support region. This level is expected to hold, but a breakdown could lead to another decline towards $1K. Technical analysis shows ETH’s bearish momentum has paused at this support zone, which also aligns with a major swing low from November 2024. While there has been a recent uptick in buying pressure, selling pressure remains dominant, increasing the risk of heightened volatility. If the $1.5K support fails, a sharp decline could ensue.
Ethereum Bounces Back, Long-Term Holders Show Signs of Capitulation
Ethereum experienced a significant recovery this week, jumping over 21% from its recent low of $1,380 within hours. The rebound was triggered by a sudden shift in macroeconomic policy as US President Donald Trump announced a 90-day pause on reciprocal tariffs for all countries except China. This news caused a Ripple through global markets and sparked a short-term rally in risk assets, including cryptocurrencies. Ethereum, which had faced heavy selling pressure for weeks, seems to have found temporary relief. Data from Glassnode suggests that long-term Ethereum holders are starting to offload positions at a loss after months of decline. Historically, such moments of capitulation by long-term holders have often marked bottoming phases and preceded meaningful rebounds.
Ethereum Whale Sells $ETH Holdings After Years of Dormancy
The Ethereum ($ETH) ecosystem has faced significant sell-offs recently. According to Onchain Lens, an Ethereum whale sold all its $ETH holdings after being dormant for an extended period. The whale, as per Nansen’s on-chain data, had been inactive for 2.4 years before resurfacing to liquidate up to 2,024 $ETH for nearly $2.96M.
