Ethereum (ETH) price fluctuates in 2025, causing some traders and investors to worry about its future.

The price of Ethereum (ETH) has fluctuated in 2025, causing some traders and investors to worry about its future. The price has fallen by almost half

The price of Ethereum (ETH) has fluctuated significantly in 2025, causing some traders and investors to become concerned about its future. The token has dropped by nearly half from its YTD highs of around $3,635 to hit lows of $1,910.67. Many are wondering if the token will ever breach the $4,000 resistance and a new high of around $5,000.

Many eyes are also on the upcoming Pectra upgrade and whether it can trigger an increase in the price of Ethereum.

However, first, let's take a look at the rocky start that Ethereum had to 2025.

What happened to the price of Ethereum in 2025?

So far, 2025 has been a rough year for Ethereum. At the end of January, Ethereum was trading at $3,267.90 per an earlier ETH price analysis as the forecast for January’s push to $4,000 failed.

Unfortunately, it dropped to around $1,910.67 by mid-March. This large drop in just a few weeks has seen several large investors sell off, as seen in Ethereum ETF outflows.

While Ethereum still has high growth potential for the future, the short-term price movement of the token has been seen as unpredictable. The delay in key upgrades, like the Pectra update, has also made things harder for Ethereum.

As of press time, CoinMarketCap data shows that Ethereum’s price was trading at $1,931.64 and has seen an over 1% decline in the last 24 hours.

Still, ETH remains the second largest cryptocurrency globally, with a Market capitalization of $233.12 billion.

With the price drawdowns conditional, the question now becomes what its prospects for growth are in the short term.

Will the Pectra upgrade boost Ethereum price?

The Pectra upgrade, which was announced by Vitalik Buterin, is designed to make Ethereum faster and more efficient. It combines two key updates, Prague and Electra, which are designed to improve Ethereum’s performance, especially regarding scalability and staking.

The mainnet launch for Pectra was expected to happen in early April, but the circumstances surrounding its testing are uncertain. This is because the Sepolia and Holesky testnets encountered configuration issues.

This testnet hiccup fueled the latest Ethereum price drawdown as community sentiments dropped. However, ETH developers have stepped up to create a fix. They are set to launch the “Hoodi” testnet by Monday, March 17, which will help redirect the testing of key Pectra upgrade features.

If all goes well, the mainnet launch could take place between April and May 2025. Many Ethereum proponents believe the success of Pectra might serve as a primary catalyst for the Ethereum price boom to $5,000.

What's next for Ethereum ETF?

Another factor that could influence ETH’s price outlook is the launch of Ethereum ETFs. While Bitcoin ETFs have become increasingly popular, Ethereum ETFs are lagging behind in terms of sustained capital flow.

Data from SoSoValue shows that Ethereum ETFs lost over $143 million in assets this week. This is a large outflow compared to last week when they recorded $119 million in outflows.

Although the broader market sentiment is impacting this shift, when the stock market gains revival, the ETF market and by extension Ethereum price may gain momentum.