Ether Faces Uphill Battle Amid Low DEX Volumes and Institutional Outflows

The cryptocurrency market has been affected by various socio-economic events, including the US and Israel-Iran war, which has contributed to a risk-off environment. As a result, Ether's price has dropped 31% since the start of 2026, driven by a dip in decentralized application activity and a cautious mood across the cryptocurrency space.

Several indicators suggest limited short-term upside for Ether. US-listed spot Ether ETFs recorded $298 million in net outflows since March 18, marking six consecutive trading days of redemptions. Additionally, weekly DEX volumes on Ethereum have fallen by around 50% compared to levels seen in the final three months of 2025.

A recent report from the Financial Action Task Force (FATF) has also urged nations to tighten oversight as stablecoins become more common in payments and cross-border transfers using self-custody wallets. This has added another layer of worry for traders, contributing to Ether's struggles to maintain levels above $2,400.