TLDR
- Ethereum ETFs have seen over 60% decline in total net assets, dropping from $14.28 billion to $5.25 billion
- Justin Sun announced Tron will not sell its ETH holdings despite price decline
- Galaxy Digital has deposited $79.37 million worth of ETH to exchanges in the past five days
- ETH has been in a downtrend since December 2024, currently trading around $1,580
- Some technical indicators show oversold conditions, potentially signaling a bottom
Ethereum has faced significant selling pressure in recent months, with the second-largest cryptocurrency trading around $1,580 as of April 18, 2025. The decline has been persistent since December, marking ETH’s longest multi-month downtrend since its 2017 launch. Despite this bearish trend, Tron founder Justin Sun has publicly committed to holding his ETH investments.
US spot Ethereum exchange-traded funds (ETFs) have experienced consistent outflows, shedding $12.01 million on Wednesday alone according to SoSoValue data. Since Trump’s tariffs went into effect, ETH ETFs have seen a net outflow of $909 million.
The weak price action has dramatically impacted the total net assets of US spot Ether ETFs, which have plummeted more than 60% from their all-time high of $14.28 billion in December to just $5.25 billion on Wednesday. This sustained exodus of institutional money reflects heightened risk-off sentiment among investors.
Sun’s Vote of Confidence
In contrast to the selling trend, Tron founder Justin Sun announced on Thursday that his organization has no plans to sell its Ethereum holdings despite the prolonged price weakness.
“ETH is currently at a low price, but we have no intention of selling our ETH holdings,” Sun wrote on X (formerly Twitter).
ETH is currently at a low price, but we have no intention of selling our ETH holdings. Tron will continue to seek opportunities to collaborate with more Ethereum developers and build our industry together.
— H.E. Justin Sun 🍌 (@justinsuntron) April 17, 2025
Sun further stated that Tron would continue collaborating with Ethereum developers to strengthen the industry. While the Tron Foundation hasn’t publicly disclosed its exact ETH holdings, Sun personally is believed to hold approximately 665,000 ETH valued at just under $1 billion at current prices.
This represents a substantial decrease from previous valuations that reached around $2.5 billion when ETH prices were higher. One whale wallet potentially belonging to Sun reportedly holds over 168,000 stETH (staked ETH), according to data from Arkham.
Institutional Movements
Sun’s commitment to hold comes amid potential selling activity from other major players. Digital asset firm Galaxy Digital has deposited 49,681 ETH worth approximately $79.37 million to cryptocurrency exchanges Binance and Coinbase over the past five days, according to wallet tracking platform Lookonchain.
Several ETH whales have also capitulated within the past month following the impact of Trump’s tariffs on the market. This has created additional selling pressure for ETH, sparking fears of a possible dip below the $1,500 level.
Ethereum saw $23.10 million in futures liquidations in the 24 hours preceding April 18, with long and short liquidations totaling $12.52 million and $10.58 million respectively, according to Coinglass data.
Technical Outlook
ETH has maintained a downtrend since December 16, extending its movement within a key descending channel for more than four consecutive months. Technical indicators suggest the cryptocurrency may be reaching oversold territory.
The Relative Strength Index (RSI) is approaching the oversold region, while the Stochastic Oscillator has remained oversold since late February. The Moving Average Convergence Divergence (MACD) has posted two consecutive receding histogram bars, indicating a slight weakness in bearish momentum.
A breakdown below the channel’s lower boundary could accelerate ETH’s decline and trigger further capitulation. However, a breakout above the channel’s upper boundary and reclaiming of the $2,000 level could potentially shift ETH into a bullish trend.
Some market observers believe Ethereum price may have bottomed, with bullish US unemployment data potentially triggering a rally toward $2,000. Chart analysis shows ETH trading above a resistance trend line, which some interpret as a signal for a possible push toward higher levels.
This prolonged bearish phase comes as ETH ETF issuers including Fidelity, Bitwise, Grayscale, and 21Shares are seeking approval from the Securities and Exchange Commission to allow staking within their ETH ETF products. If approved, this would enable investors to earn approximately 3% yield on their ETH ETF holdings, potentially reducing selling pressure on these products.
Ethereum’s current price of around $1,580 represents a decline of about 46% over the past 12 months, a stark contrast to its previous bull market highs.
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