Ethereum Falls into a "Silent Crisis": Market Cap Lost Over Half in Nine Months, Lacking Support from Dip Buyers

According to on-chain analysis firm Easy On Chain data, Ethereum's market cap has fallen from approximately $585 billion in August 2025 to about $255 billion this month, a decline of over 55%, entering a mid- to long-term bear market phase.

The report points out that the most obvious downward warning signal is the decline in institutional participation in the current market. Specifically, the fund holdings of Ethereum have decreased from over 7 million coins in October 2025 to the current 5.5 to 5.7 million coins.

Meanwhile, the Coinbase Premium Index remained negative throughout May, indicating that U.S. institutional buyers have essentially withdrawn; daily fund trading volume dropped to $17 million to $42 million, far below the annual average level.

Analysts describe the current market as a phase where "futures market-driven optimism continues to build, but the spot market lacks solid support," and this disconnect is becoming more evident in price movements;

Specifically, Ethereum has fallen nearly 7% in the past week, over 9% in one month, and about 17% over the past year, retracing more than 57% from its all-time high of $4,950 in August 2025.

On the technical side, the outlook remains bearish. Commentator Ted Pillows pointed out that even if stocks and Bitcoin rise, Ethereum "still cannot return to $2,150," because "big buyers are fundamentally not interested."

Analyst Benjamin Cowen believes Ethereum may once again test the lows of April 2025; Cryptomorphic warned that if the upward support trendline is broken, ETH could move toward the $2,050 region.

The macroeconomic environment is also unfavorable for Ethereum. On May 18, Bitmine Chairman Tom Lee attributed Ethereum's weakness partly to rising oil prices in a blog post, noting that ETH has the highest negative correlation with crude oil prices in history.

On the same day, U.S. President Trump issued a warning to Iran, triggering geopolitical pressure. Bitcoin's price dropped to about $76,700, with over $660 million in crypto market liquidations, including $256 million in Ethereum liquidations.

Overall, Ethereum is currently in a difficult situation, with market data, technical signals, and macro environment all releasing negative signals. If it cannot attract buyers, reshape market structure, and respond to external pressures, Ethereum may continue to struggle in the bear market, with future trends full of uncertainty.

#EthereumBearish