After a weekend that seemed to be problematic, today instead the price of ETH is recovering.
For several weeks now, it seems to be trying to find a recovery, which instead continues not to arrive, despite having already emerged from the quicksand.
At this moment, it seems that Ethereum does not have the strength to resume rising, and that its price trend is actually limited to following that of Bitcoin.
Summary
The decline of last week in the price of ETH
Last Friday, with the start of the missile attack by Israel on Iran, the financial markets got a bit scared.
The price of ETH was above the critical threshold of $2,700, and it seemed it could stay there, as it had finally managed to hold that level for a few days.
Instead, the news of the start of the remote war between Israel and Iran caused it to plummet very quickly to below $2,500.
The interesting thing, however, is that not only did it not drop any lower, but just a few hours later it had already managed to climb back above $2,500.
It must be said that $2,500 is a level perfectly in line with that of the last month, and that it is higher than the $2,400 it had at the end of October last year, before Trump’s electoral victory.
It can therefore be said that last week’s decline was very limited, so much so that it did not affect the trend of recent weeks at all, which, however, is not ascending but of dynamic lateralization.
Note that on Friday the price of ETH lost 10% with the news of the missile attack by Israel, while Bitcoin was limited to a -4.5%.
The price of ETH bounces during the night
Starting from tonight, that is, from when the traditional stock exchanges reopened after the weekend closure, a rebound occurred.
This rebound was almost simultaneous for both BTC and ETH, so it is probably not explained by analyzing the trend of Ethereum, but only by analyzing that of Bitcoin.
In other terms, the rebound of ETH was probably just a consequence of the rebound of BTC, even though today Bitcoin is recording only a +2%, while Ethereum is well above +4%.
The point is that tonight at the reopening of the markets the Dollar Index fell, causing as a consequence a rebound in the price of BTC. ETH followed suit.
It must always be remembered that very often altcoins in the crypto markets are used as speculative assets to try to accumulate BTC, so often the prices of altcoins move together with that of Bitcoin, including that of Ethereum.
The difficulties of Ethereum
One must not forget, however, that if before Trump’s election the price of ETH was around $2,400, thanks to the so-called Trump trade it rose to $4,000.
In reality, the Trump trade generated a true mini-bubble in the crypto markets, which burst in the second half of January when Trump then took office at the White House.
With the burst of that mini-bubble, the price of Bitcoin ended up returning close to the starting levels of late October 2024, but always remaining slightly above.
Instead, the price of Ethereum has dropped well below the starting levels of October, eventually hitting an annual bottom at the beginning of April, falling below $1,500.
In short, in this 2025 the price of ETH has shown to be in strong difficulty, whereas that of BTC has ultimately demonstrated strength.
The future of ETH
The problem is that such difficulty does not seem to have passed at all.
The current price level of ETH is only slightly higher than that of October 2024, while that of BTC is much higher.
The fact is that behind Ethereum’s difficulties there are structural market dynamics, which cannot disappear in the short term.
It is not a coincidence that these difficulties began to manifest themselves precisely in the second half of January.
To tell the truth, already in July of last year, with the launch of the first ETF on ETH spot on the USA exchanges, some difficulties had manifested, but those were not of a structural nature. In fact, they were temporary difficulties that by November seemed to have been almost completely absorbed.
The structural problem is the strong competition from Solana, especially in the field of memecoins. A few days before his inauguration at the White House, Trump launched his own official memecoin, precisely on Solana and not on Ethereum.
By now Solana is dominating the memecoin market, which has deflated the memecoin bubble on Ethereum, with negative consequences on the price of ETH. This scenario is still absolutely ongoing, and it will very likely remain so for a long time.
