Ethereum’s Looming Price Plunge—Here’s Why the Bottom Could Fall Out

Gas fees spiking like a caffeinated trader during a bull run? Network congestion worse than a Wall Street bottleneck? Ethereum’s showing cracks—and the smart money’s hedging bets.

Subheader: The Triple Threat Hammering ETH

Layer-2 adoption isn’t scaling fast enough to offset mainnet chaos. Competitors like Solana and Avalanche are eating Ethereum’s lunch on transaction speed. And let’s not even start on the ’ultrasound money’ crowd suddenly noticing ETH’s inflation rate creeping up post-Merge.

Subheader: Institutional Players Are Getting Twitchy

Futures open interest just hit a 2025 low while Grayscale’s ETH trust trades at a 15% discount. When the whales start parking funds in—wait for it—Tether instead, you know sentiment’s turning.

Closing Thought: This isn’t 2018’s bloodbath... yet. But with staking yields compressing and DeFi TVL leaking like a busted stablecoin, Ethereum’s ’flippening’ narrative might get flipped on its head.

*Bonus jab*: Nothing says ’healthy ecosystem’ like Vitalik selling another 200 ETH to fund longevity research while retail bags the dip.

Ethereum (ETH) rose 44% over the last week, fueled partly by the Chinese-United States trade agreement but also by the Ethereum Pectra upgrade launch that went astoundingly well.  

It looks like ethereum may be losing momentum, as it climbed from $1,796 (ETH/USD) to $2,546 in a week, but it has slowed to a loss of 0.05% over the last day. Despite its tremendous gains, Ethereum may not be able to climb further, and in fact, it could be in danger of crashing.

The hype surrounding the Pectra launch was sustained when the upgrade managed a hard fork without any major issues. There were concerns that the coin WOULD not be live for a short period of time, as there are every time there is a major change to the coin. Analysts compare this kind of upgrade to trying to fix a high performance car while it is in motion, so a number of things could go wrong. But thankfully for ETH investors, the hard fork went smoothly.

Now that the Pectra upgrade has finished and the hype over the recent trade agreement is dying down, Ethereum could quickly lose steam. There is concern that the coin rose too quickly all at once and could crash as a result. Bitcoin (BTC) also did really well recently and gained more than 4% over a 24-hour period. But BTC was not boosted by an upgrade going well, so even if it loses momentum, it likely will not come down as hard as Ethereum could.

Ethereum’s recent bullish movement has been driven by real market demand for the coin, which is very promising. This means there is less chance that a major drop will happen, but the coin is likely to correct to some degree. The concern is how much correction will take place.

Trade volume for the coin is still high, up by 5% over the last 24 hours, but not tremendously high. There are indications that the coin is slowing down and could stagnate or drop very soon- as soon as the end of the day.

However, because the trade agreement frees up ETH and the wider cryptocurrency market as well as the stock market, there should be a strong amount of market support for the coin. Even if Ethereum does fall quickly and steeply, we expect that it will bounce back almost to its current level shortly thereafter.