Ethereum now finds itself in a strong bearish trend as growing on-chain and social metrics are painting a picture of deep investor sentiment and network activity. The ETH/BTC trade rate additionally dropped sharply all the way down to 0.01924 on Apr. 14, its lowest stage since January 2020. This decline has fueled concerns among investors, many of whom have voiced dissatisfaction with Ethereum's performance in the current market cycle.
Declining Network Activity and Revenue
This data paints a disturbing picture of Ethereum’s network activity and revenue streams. In March, revenue to mainnet validators was down to less than $200 million per month. This drop reflects a reduced vitality and success for those that are fighting to defend the network.
With decentralized exchanges (DEX) on the Ethereum chain producing just $1.1 million in revenue during the last 24 hours. Combined, this figure paints a gloomy picture of declining trading activity and user engagement. The Gas on Ethereum mainnet has lead steadily low at 2 Gwei. This decrease is seen as a strong indication of a serious crash in on-chain activities.
TVL Plunge and Whale Exits
The total value locked (TVL) on the Ethereum chain has dropped by more than 80%. It has plummeted, from a historic high-point of almost $80 billion down to a mere $46.9 billion. Even considering the recent growth of Ethereum-denominated assets, this almost 50% drop highlights a dramatic departure of assets from the Ethereum ecosystem.
Compounding the selling pressure, many large Ethereum holders—otherwise known as whales—have been cutting their holdings lately. On April 10, an ETH whale took a major short position, selling 35,881 ETH at an average price of $1,562. Fast forward to today, now it contains only 688 ETH. Another address, dubbed 0x62A, moved 4,482 ETH on April 12. Their average price of $1,572 netted them $7.05 million. One original gangster address group purchased 100,000 ETH during the ICO in 2015. Since April, they’ve sold a combined 4,180 ETH on Kraken, netting just over $7.05 million.
ETF Outflows and Market Sentiment
Over the last month, Ethereum spot ETFs experienced multiple days of outflows. Largest single-day outflow crossed a jaw dropping $75 million. This trend is a clear sign that investors are retreating their capital from these investment vehicles. They could be concerned about Ethereum’s short term prospects.
The Crypto Fear and Greed Index is still in the “panic range,” meaning that investors are becoming more risk-averse. This is especially important in the context of the current market climate, where Bitcoin has become the go-to asset for investors looking for safety and security.
"If the ETH/BTC exchange rate falls below 0.018 in Q2 2025, it may trigger more leveraged position liquidations, further suppressing prices."
In one of the latest signs of a cooling down Ethereum ecosystem, the number of monthly active addresses on the Ethereum mainnet has jumped around recently. In March, it fell to below 15 million. The average daily transaction volume on the Ethereum chain is now below $3 billion. This decrease makes apparent the falloff in network activity.
