Ethereum (ETH) Declines 33% in February 2025

Ethereum price closed trading at the $2,200 mark on Friday, closing February 2025 with 33% losses. On-chain data suggests Ethereum ETFs influence on the market downtrend

Ethereum (ETH) price closed the month of February 2025 with 33% losses as on-chain data suggests that Ethereum ETFs could see further downward pressure.

The cryptocurrency market saw major altcoins like XRP and Solana gain momentum.

On-chain data suggests that traders could be rotating out of ETH ETFs in anticipation of fresh altcoin ETF approvals.

Ethereum experienced significant selling pressure throughout February, reflecting a broader bearish sentiment in financial markets.

While major altcoins like XRP and Solana have seen some gains following progress in their respective ETF filings, traders appear to be largely losing interest in ETH.

The chart above shows that ETH price is set to close February with a 33% loss.

The post-market movements indicate that the sellers quickly returned after a brief respite on Friday, March 1.

The price tumbled from $2,800 on Monday to close near $2,220 on Friday.

The closing price also represents a 7.7% decrease from the previous week, where it opened at $2,400.

The sustained selling pressure on Ethereum ETFs has seen institutional investors pull over $300 million in the past seven trading days.

The selling spree, which began last week, has now extended into this week.

According to Fairdside data, February 26 saw the largest single-day withdrawal at $94.3 million.

The preceding days also recorded heavy selling:

The past week saw no ETF inflows, making it the first week in 2025 where Ethereum ETFs saw only outflows.

This trend suggests that institutional investors are either reallocating capital or hedging against further downside risk in ETH.

The persistent selling pressure aligns with Ethereum’s sharp price decline.

The asset is set to close the month with a 33% loss, while this week alone saw a 22% drop in ETH price.

Analysts attribute the downturn to macroeconomic uncertainty and a shifting focus toward alternative crypto ETFs.

Rival Layer-1 altcoin projects such as Litecoin and Solana have gained momentum. Bitwise has filed for an Aptos ETF, while CME Group is moving forward with Solana futures ETFs.

With Polymarket odds suggesting a 90% chance of LTC ETF approval, capital rotation away from Ethereum appears to be accelerating.

Unless ETH sees renewed institutional interest, continued ETF redemptions could reinforce its bearish trend in the coming weeks.

Investors Eye Alcoin ETFs Amid Ethereum Uncertainty

The wave of Ethereum ETF outflows comes as other cryptocurrency ETFs continue to gain traction.

Recent SEC filings indicate that Litecoin (LTC) and Solana (SOL) ETFs could be approved soon.

Key developments include:

These developments suggest that traders could be rotating capital out of Ethereum ETFs and into emerging crypto ETFs.

The Final Day of February Saw a Small Net Inflow into ETH ETPs

Data from Glassnode shows that the crypto market saw a surprising shift in institutional sentiment on Friday, February 28, as major altcoins experienced unexpected selling pressure.

Despite the broader market downturn, which saw inflows into crypto ETPs totaling $128 million over the past seven days, the narrative took an interesting turn.

While the narrative surrounding the crypto market in February 2025 has largely focused on institutional outflows from Ethereum ETFs, the latest data from Glassnode reveals a small net inflow into ETPs.

This trend aligns with the broader market narrative, which saw a preference for equities over bonds.

However, the past week has seen a slight shift, with inflows into crypto ETPs outpacing those into equities.

The selling pressure on major altcoins like MATIC, LINK, and ADA was unexpected, considering the recent progress made by Solana and Litecoin in their respective ETF filings.

This development could indicate that traders are preparing for a shift in focus, moving away from Layer-1 altcoins and pivoting toward Layer-1 ETF approvals.

The coming weeks will be crucial in observing whether ETH price can regain upward momentum or if capital rotation into alternative crypto ETFs will persist.

Ethereum Price Forecast: Bulls Face Deeper Correction Risks If $2,200 Support Caves

Technical Analysis

Relative Strength Index (RSI) oversold

Donchian Channel lower band suggests strong selling pressure

Lack of strong rebound despite oversold RSI implies bearish momentum

Minor accumulation at $2,200 offers potential support

The broader crypto market is showing signs of fatigue as the recent rally stalls.

The rally encountered strong resistance at the 200-week moving average, which could be setting the stage for a deeper correction.

The Relative Strength Index (RSI) on the weekly chart also suggests that buyers are losing steam.

The RSI has pulled back from overbought territory and is now trading below the 70 level.

This setback in bullish momentum could foreshadow further weakness in the market.

If the bulls fail to defend the $2,200 zone