And it is that at the start of 2025, ETH deleted almost all its gain registered in the last year and quotes for these hours up the US $ 2,680. At the beginning of February, the asset suffered its largest liquidation event in the last two years, with US $ 475.72 million in long positions YU $ s127.78 million in short positions. At that time, the open interest in the futures market fell 27% to US $23.36 billion, while its financing rate decreased to levels not seen from the Covid crisis in March 2020.
All this happens in the middle of the commercial campaign of Donald Trump. And it is that import tariffs could increase inflation, which consequently would lead to higher interest rates. This unleashed a feeling of risk aversion that impacted the drop in cryptocurrency prices. Bitcoin lost the US $ 100,000 and moves away (11%) from its historical maximum.
What happens with Ethereum?
Ethereum’s strong drop in open interest suggests that operators reduce their leveraged positions, perhaps due to market uncertainty. Matías AlbertiArgentine country manager of Coinbaseexplains in dialogue with Scope That, in the last week the bearish feeling in the crypto market died despite the fact that Trump continued with his tariff plans.
“What stands out these days is that ETF tickets from Eth al and more than duplicated BTC, With US $ 409 million in front Au $ S173 MilloneS ”, says Alberti. And it is that these excessive entries in the ETF of ETH can reflect opportunities in the basic operations of CME (Chicago Mercantile Exchange), which also suggest a possible divergence in the feeling towards ETH between traditional financial actors and cryptoactive investors.
For its part, Pablo MontiBrand Manager for Europe and Latam in Bingxanalyzes that Ethereum is going through a complex period, marked by several challenges, but also by opportunities.
Monti assures that, on the one hand, much of Eth migra’s growth to layer 2 solutions And even platforms like Solarium. “This reflects a transformation in its ecosystem, along with a context of uncertainty that affects the confidence of its users and followers,” explains the expert, which indicates that this situation was evidenced in non -binding consultation that was carried out in recent days and in which many questioned the leadership of the Ethereum Foundation.
And as Monti explains, the crypto market as a whole is going through a moment of important volatility, closely linked to the New administration in the US.
For Monti, “when Trump assumed, a great impulse for the cryptoactive market was anticipated, backed by a cabinet aligned with the cryptocurrency ecosystem. However, At the beginning of his mandatethe administration did not directly address the issue, which was perceived by investors as a setback. From that moment, political decisions caused unexpected reactions in the markets, both traditional and digital. ”
The lack of immediate catalysts, a problem for the crypto market
María Fernanda JuppetCEO of Cryptomkt, He comments in dialogue with this medium and in line with Monti that, the significant correction of ETH so far this year reflects a combination of both internal and external factors to the crypto ecosystem.
“From a fundamental perspective, the Ethereum Net layer 2but the market still did not incorporate these innovations in the price in a sustained way, ”slides the expert.
On the other hand, Juppet indicates that in the macroeconomic context, The crypto ecosystem is found at a consolidation point“With a lack of immediate catalysts that drive a solid rebound. ” And it is that the caution of institutional investors and the expectation of new regulations arouse a lower purchase activity in recent months.
The common denominator in the correction of Ethereum and in general of the crypto market seems to be then that investors are very attentive to the political landscape in the US, since the ads and measures in the matter implemented by the Trump administration They could bring changes to regulatory position Towards these assets. Juppet well remembers that the last presidency of the Republican tycoon had a more pessimistic approach to crypto compared to what is expected of second administration.
How will the crypto market follow?
From Coinbase They anticipate that the increase in entries in ETH ETFs, both in cash and leverage, followed the positive comments of Eric Trump About ETH, together with the purchases of the World Liberty Financial project.
At the same time, Alberti argues, the downward movement driven by the liquidations pushed the ETH/BTC ratio below 0.025 for the first time since 2020, which may have been seen as a purchase opportunity for certain market participants.
The expert emphasizes that despite the initial negative reaction of prices to Trump’s tariff threats, trade remained ordered, and buyers intervened to take positions in BTC, ETH and SOLso in the short term, the general macroeconomic tendencies are likely to follow.
Ethereum vs Bitcoin.png
“However, positioning is now much healthier, since the open interest in many important Altcoins decreased,” Alberti concludes. Meanwhile, Juppet ensures that crypto market cycles have demonstrated resilience to external events and, in the long term, Adoption is increasing both institutional and retailwhich reinforces the solidity of Ethereum and the entire ecosystem.
Finally, Monti believes that the bearish feeling will diminish as the advertisements of new measures by the new US administration, which generates uncertainty in the markets and price fluctuations beyond the behavior of the assets, be morigored.
Despite the context, there are signs that Ethereum continues in evolution, with technological improvements and a growing institutional interest reflected in the entrances to ETFs. In addition, the performance demonstrated in past cycles suggests that, in the long term, ETH can overcome these obstaclesin particular if macroeconomic and political conditions stabilize.
Source: Ambito
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