Ethereum's Price Plummets 67% from All-Time High Amid Macro Pressures

Ethereum's price has been on a downward trajectory since reaching an all-time high of $4,946 in August 2025. The cryptocurrency is currently trading near $1,644, down 66.8% from its peak.

The decline can be attributed to several factors, including macroeconomic pressures such as sticky inflation and geopolitical tensions, which have weighed harder on high-beta assets like Ethereum than on Bitcoin. Additionally, spot Ethereum ETFs have recorded significant outflows, with BlackRock briefly reversing the trend before returning to a sell-off.

Another factor contributing to Ethereum's decline is its relative position in the market. Bitcoin's dominance has risen to near 58%, while Ethereum's dominance has compressed to roughly 9%. This shift in market dynamics has led analysts to point out that investors are rotating capital away from Ethereum and towards Bitcoin, which is seen as a store-of-value asset.

While the current market conditions may seem bleak for Ethereum, proponents believe that its fundamentals remain strong. The cryptocurrency's decentralized finance (DeFi) total value locked (TVL) on Ethereum mainnet stands near $37 billion, and developer activity remains high. The upcoming Glamsterdam upgrade is also expected to bring improvements in MEV fairness and efficiency.