Ethereum's Price Decline Attributed to Macro Pressure and Bitcoin Dominance

Ethereum's price has taken a significant hit, dropping to $1,644, down 66.8% from its all-time high of $4,946 in August 2025.

The decline is attributed to a combination of macro pressure, persistent ETF outflows, and bitcoin's rising dominance. Analysts point to several factors contributing to ETH's struggling performance, including the inverse correlation between oil prices and ETH, which has reached historically elevated levels.

Additionally, spot Ethereum ETFs have recorded significant outflows, with one fund logging $3 billion in redemptions following its conversion to an ETF.

The Pectra upgrade, activated in May 2025, introduced account abstraction via EIP-7702 and expanded blob throughput, but lower base-layer fees have reduced ETH burn under EIP-1559, easing the deflationary pressure that had previously supported ETH's price narrative.