Ethereum has experienced a significant downturn, losing over $100 billion in market capitalization over the past week as its price plunged below the $2,200 mark, reaching its lowest level in nearly nine months, according to data from CoinGecko.
This steep decline has raised concerns about the potential for further drops in value. Jim Hwang, COO of the crypto investment firm Firinne Capital, indicated that there could be support around the $1,500 level, drawing parallels to significant price fluctuations observed in April 2025.
In addition to the price slump, Ethereum’s spot ETFs have seen significant outflows totaling $342 million this year. Hwang noted that this trend starkly contrasts with the underlying fundamentals of the Ethereum network, which are characterized by an increase in the tokenization of real-world assets and positive usage metrics.
The current state of Ethereum comes amidst comments from co-founder Vitalik Buterin, who remarked that the “original vision of L2s and their role in Ethereum no longer makes sense.” He attributed this shift to the slower-than-anticipated progress of layer 2 networks, while emphasizing that layer 1 solutions are evolving and reducing transaction fees.
Despite the current challenges, there remains a degree of optimism within the crypto community. The potential for Ethereum’s underlying technology to evolve and adapt could lead to future growth opportunities as the market stabilizes and matures.