Ethereum Down 55% From Peak With Little Sign of Buying Support
Summary
- Ethereum has fallen 55%% from its peak, but buying interest in the market remains limited.
- On-chain analytics firm EasyOnChain said ETH has entered a medium- to long-term bear market and that the gap between the derivatives market and spot demand is widening.
- Spot ETF flows, a negative Coinbase Premium, and declining institutional participation are being flagged as warning signs for the direction of the altcoin market.
Forecast Trend Report by Period
Ethereum has fallen 55% from its peak, but buying interest remains limited, raising concerns that institutional demand is weakening.
CryptoPotato, a cryptocurrency-focused outlet, reported on May 21 that on-chain analytics firm EasyOnChain believes ETH is still failing to absorb selling pressure despite the decline.
Ethereum's current crisis is not just the price drop, EasyOnChain said. The wider problem is the growing disconnect between the derivatives market and spot demand.
The firm also said ETH appears to have entered a medium- to long-term bear market.
It pointed to flows into and out of spot Ether ETFs as a warning sign that institutional participation is declining.
EasyOnChain added that the Coinbase Premium remained negative throughout May, suggesting U.S. institutional investors are pulling back from the market.
The broader crypto market has recently seen altcoins continue to underperform Bitcoin, while institutional money remains concentrated in BTC.
Investors are now watching whether spot demand for ETH recovers and whether institutional flows shift, as both could influence the direction of the altcoin market.
