Ethereum has lost more than half of its value over the past nine months, and analysts say one of the most concerning developments is the lack of buyers stepping in during the downturn.
According to on chain analyst Easy On Chain, the issue extends beyond Ethereum’s falling price. The analyst pointed to a widening gap between activity in the derivatives market and genuine spot market demand, describing the situation as increasingly fragile.
Ethereum Market Structure Showing Signs of Weakness
In a market report published on May 21, Easy On Chain argued that Ethereum has already entered a medium to long term bear market phase after its market capitalization plunged from roughly $585 billion in August 2025 to around $255 billion this month.
One of the clearest warning signs highlighted in the report was the steady decline in institutional participation.
Fund holdings, which previously exceeded 7 million ETH in October 2025, have reportedly dropped to between 5.5 million and 5.7 million ETH.
At the same time, the Coinbase Premium Index remained negative throughout May, suggesting that US based institutional investors have largely stayed away from the market during the recent selloff.
Trading activity has also weakened considerably. According to Easy On Chain, daily fund trading volumes have fallen well below yearly averages, dropping into a range between $17 million and $42 million in recent months.
The analyst described the current environment as a market where “futures driven optimism is building without strong spot market support.”
That disconnect is becoming increasingly visible in Ethereum’s price performance. Data from CoinGecko shows ETH has fallen nearly 7% over the past week, more than 9% over the last month, and roughly 17% across the past year.
Ethereum also remains more than 57% below its all time high near $4,950 reached in August 2025.
Technical Indicators Continue Pointing Lower
Several analysts on X argued that Ethereum’s technical outlook remains weak despite Bitcoin recovering above the $78,000 level.
Crypto commentator Ted Pillows noted that ETH still has not managed to reclaim the $2,150 level even as stocks and Bitcoin moved higher, adding that major buyers appear uninterested in accumulating the asset.
Meanwhile, analyst Benjamin Cowen warned that Ethereum could revisit its April 2025 lows near the lower logarithmic regression trend line.
Another analyst, Cryptorphic, cautioned that a break below Ethereum’s rising support trend line could open the door for a decline toward the $2,050 region.
Broader macroeconomic conditions have also added pressure.
In a post published on May 18, Tom Lee linked part of Ethereum’s weakness to rising oil prices, claiming ETH currently has its strongest inverse correlation with crude oil on record.
That same day, geopolitical tensions intensified after Donald Trump issued warnings directed at Iran. The development pushed Bitcoin down to around $76,700 and triggered more than $660 million in liquidations across the crypto market.
Ethereum alone accounted for approximately $256 million of those liquidations.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic
