Ethereum price at a critical level: Could staking provide hope as the bear market deepens?

Ethereum (ETH) continues its downward trend that has persisted for the past three months. The ETH/USD pair tested below $1,900 with a 1.6% decline in the last 24 hours. Since reaching $4,100 in December 2024, Ethereum has lost a total of 53% of its value. The overall negative sentiment in the crypto market and macroeconomic uncertainties are increasing selling pressure on Ethereum.

Another factor exacerbating the downward pressure on Ethereum is the outflows from spot ETFs in the U.S., with total outflows exceeding $119 million over the past four weeks. This indicates a decline in institutional interest. However, some market analysts maintain a positive long-term outlook for Ethereum. For instance, VanEck predicts that Ethereum could rise to $6,000 by 2025. Nonetheless, ongoing outflows from ETFs are expected to continue to suppress Ethereum’s price movements.