Ethereum price closed trading at $2,200 mark on Friday, closing February 2025 with 33% losses. On-chain data suggests Ethereum ETFs influence on the market downtrend could intensify as fresh altcoin ETF approvals edge closer.
Ethereum (ETH) Declines 33% in February 2025
Ethereum (ETH) experienced intense selling pressure throughout February, reflecting broader bearish sentiment in financial markets. While major altcoins like XRP and Solana gained momentum following progress in their respective ETF filings, ETH price has struggled to retain investor interest.
ETH price chart above highlights a significant downturn, with ETH losing over 22% this week alone. The price tumbled from $2,800 on Monday to close near $2,220 on Friday. Zooming out, Ethereum’s closing price of $2,220 represents a staggering 33% decline from its February 1 opening price of $3,200.
Ethereum ETFs See $300M Outflows as Traders Rotate to LTC, SOL ETFs
Ethereum ETFs have seen a relentless wave of outflows, with institutional investors pulling over $300 million in the past seven trading days. The selling spree, which began last week, has now extended into this week, marking a period of sustained capital flight from ETH-based funds.
A detailed breakdown of the outflows according to Fairdside data shows that February 26 witnessed the largest single-day withdrawal at $94.3 million. The preceding days also recorded heavy selling:
- February 24: $78 million
- February 25: $50.1 million
- February 27: $71.2 million
No ETF inflows were recorded throughout this week, making it the first week in 2025 where Ethereum ETFs saw only outflows. This trend suggests institutional investors are either reallocating capital or hedging against further downside risk in ETH.
The persistent selling pressure has aligned with Ethereum’s sharp price decline, with the asset falling 22% this week and extending its monthly losses to 33%. Market analysts attribute the downturn to a combination of macroeconomic uncertainty and shifting investor focus toward alternative crypto ETFs.
Rival Layer-1 altcoin projects such as Litecoin and Solana have gained momentum. Bitwise has filed for an Aptos ETF, while CME Group is moving forward with Solana futures ETFs. With Polymarket odds suggesting a 90% chance of LTC ETF approval, capital rotation away from Ethereum appears to be accelerating.
Unless ETH sees renewed institutional interest, continued ETF redemptions could reinforce its bearish trend in the coming weeks.
Investors Eye Alcoin ETFs Amid Ethereum Uncertainty
Ethereum’s ETF exodus coincided with increasing traction for alternative cryptocurrency ETFs. Recent SEC filings indicate a growing interest in Litecoin (LTC) and Solana (SOL) ETFs, driving speculation about near-term approvals. Key developments include:
- Bitwise’s Aptos ETF Filing: This filing intensified investor interest in newer blockchain projects.
- Polymarket Betting on Litecoin ETF Approval: Forecast markets currently price a 90% probability of an LTC ETF gaining SEC approval.
- CME Group’s Solana ETF Speculation: The derivatives giant’s move toward Solana futures suggests growing institutional interest in SOL-based ETFs.
These developments hint at a potential reallocation of capital from Ethereum ETFs to emerging crypto ETFs, as traders seek higher growth opportunities.
Ethereum price action remains under pressure amid heavy ETF redemptions and shifting investor interest toward alternative assets. While the final trading day of February saw a net ETF inflow, the prior weeks’ sell-off underscores the broader uncertainty surrounding Ethereum’s network and market positioning.
With institutional traders pivoting toward Litecoin and Solana ETFs, Ethereum’s dominance in crypto ETF markets could face increased competition. The coming weeks will be crucial in determining whether ETH price can regain upward momentum or if capital rotation into alternative crypto ETFs will persist.
Ethereum Price Forecast: Bulls Face Deeper Correction Risks if $2,200 Support Caves
Ethereum price forecast charts suggests further downside risk as the market struggles to reclaim lost ground following a decisive breakdown.
The chart shows ETH trading within the Donchian Channel’s lower band, signaling persistent selling pressure. The Relative Strength Index (RSI) sits at 29.53, confirming oversold conditions, yet the lack of a strong rebound implies that bearish momentum remains dominant.
A bullish scenario requires ETH to defend the $2,200 level, where minor accumulation appears. If buyers step in, a move toward the midline of the Donchian Channel at $2,466.80 becomes possible, aligning with prior resistance.
A bearish continuation would see ETH lose $2,200, exposing $2,076 as the next target. Failing to hold there could accelerate selling toward $2,000. The declining RSI below its signal line suggests weak buyer commitment. Until ETH decisively reclaims resistance, the trend remains bearish despite oversold conditions.
Frequently Asked Questions (FAQs)
Ethereum faced heavy ETF outflows, macroeconomic uncertainty, and investor rotation toward alternative crypto ETFs like Litecoin and Solana.
Yes, ETH ETFs recorded seven straight days of outflows totaling over $300 million, marking a sharp decline in institutional demand.
Ethereum must defend the $2,200 support level. If buyers return, ETH could rebound toward $2,466, but continued selling may push it below $2,000.
ibrahim
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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