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Is This the End for Ethereum? ETH Hits 2-Year Low — What Happens Next?

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Ethereum Price Prediction

Ethereum (ETH) dropped to its lowest level in 2 years this week. Can it recover?

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Alejandro Arrieche

Author

Alejandro Arrieche

About Author

Alejandro is a seasoned financial analyst and adept business expert with over seven years of experience in dissecting complex business topics and vital market trends. His insightful writing, which has...

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Last updated:

April 7, 2025

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Yesterday, the price of Ethereum (ETH) dived to its lowest level since March 2023 as President Donald Trump’s tariffs triggered a market-wide sell-off.

ETH is the worst-performing crypto asset of the top 5 with year-to-date losses of 52.9%. Macroeconomic conditions have been primarily responsible for its decline as the market is concerned that higher tariffs could result in higher inflation in the near term and no interest rate cuts this year.

However, project-specific issues have also plagued the Ethereum network. Its scalability issues have allowed rivals like Solana (SOL) and Sui (SUI) to gain market share in the smart contracts space.

Meanwhile, the Pectra upgrade, an upcoming enhancement to the Ethereum Virtual Machine (EVM) was delayed to May as multiple implementations in the devnet have not performed as expected.

Ethereum’s TVL in ETH Has Expanded by 39% in 2025

Ethereum’s decentralized finance (DeFi) ecosystem is still the largest in the crypto space by total value locked (TVL) and stablecoin reserves as per data from DeFi Llama.

ethereum's EVL in ETH has increased by 39% in 2025

One of Ethereum’s strengths is its decentralization, as the network has a larger number of validators compared to competing blockchains. This reduces the odds of a 51% attack and increases the network’s efficiency and reliability.

Meanwhile, Ethereum’s TVL, expressed in ETH, has jumped by 118% since 2024 started and by 39% year-to-date. Comparatively, Solana’s TVL in SOL has expanded by 319% since 2024 but at a slower rate compared to ETH this year at 28.4%.

This 11.6% gap between the two protocols could be an indication that investors are opting to rely on the Ethereum network during a period of distress, volatility, and market turmoil rather than transacting on blockchain projects whose infrastructure is weaker and less decentralized.

This gives ETH investors hope that the decline could decelerate.

Ethereum Price Analysis – Where is ETH Heading Now?

Looking at the weekly chart, ETH seems to have bounced above two key supports in the past couple of days as momentum readings are nearing oversold levels.

ethereum could recover if its bounces off this support

If ETH manages to stay above the $1,400 level, it has a good chance of recovering to the $2,000 level at least in the next couple of weeks, as long as macro conditions don’t deteriorate any further.

Meanwhile, Bitcoin (BTC) continues to demonstrate relative strength, maintaining its position as one of the most resilient assets in the market this year.

For investors looking to capitalize on BTC’s momentum while earning passive rewards, a new meme coin—BTC Bull Token (BTCBULL)—offers an innovative way to gain exposure.

BTC Bull Token Offers Milestone-Based Reward System to Bitcoin Investors

BTC Bull Token (BTCBULL) is a unique meme coin that rewards holders as Bitcoin’s price climbs—turning bullish momentum into real-time compensation.

Since launching its presale less than two months ago, the project has already raised an impressive $4.5 million, signaling strong investor interest and growing community support.

The rewards system is quite simple. Starting at a baseline of $100,000 per token, BTCBULL investors will receive direct Bitcoin airdrops for every $50,000 added to the price.

Meanwhile, for every $25,000, a portion of BTCBULL’s circulating supply will be burned. This fosters scarcity and should result in higher prices in the near term.

Tim Draper, a well-known venture capitalist, recently shared a price target of $250,000 for Bitcoin for 2025 despite the current macroeconomic headwinds. He, among other analysts, believes that BTC’s stance as “digital gold” will draw investors’ interest in these conditions.

To buy $BTCBULL, simply head to the BTC Bull Token website and connect your wallet (e.g. Best Wallet). You can either swap ETH or USDT for this token or use a bank card to make your investment.