After one of the weakest periods for nine months in recent history, Ethereum has traded near $1670.
The following is a summary of the information that you will find on this page.
- Ethereum continues to be on the path for a second consecutive quarter of double-digit declines despite accumulation signs.
- Investors reduced the available supply of ETH, and nearly 500,000 ETH departed exchanges within a week.
- The Iran Deal and the potential reopening of Hormuz could boost sentiment towards crypto assets.
The value of the second-largest crypto currency by market volume is under constant pressure, having fallen more than 66 percent from its high in mid-2025 near $4800.
Analysts have pointed out signs of macroeconomic improvement and accumulation. The possibility of a U.S. Iran Peace Agreement, that President Donald Trump suggested could be finalized Sunday, is also affecting risk sentiment for cryptocurrency investors. Iran has denied the timeline for Sunday, but it appears that negotiations are moving forward.
Ethereum faces another weak quarter
Ethereum’s third quarter in a row of losses double-digits is fast approaching. Analyst Daan Crypto trades cites data showing that ETH dropped roughly 29% during the first quarter, and is still down over 20% for the second quarter. There are weeks left before the end of the quarter.
It follows a decline of 28 percent in the fourth quarter 2025. This means Ethereum may record three quarters in a row of losses above 20%. It would be the most prolonged period of decline since the bear market of 2022.
Daan said that despite the bad performance of Ethereum, it still plays an important part in tokenization and decentralized finance. Daan said that current prices have become attractive to long-term investors.
“Finally attractive again for longer-term accumulation,” He warned that the bear market can last much longer than expected by investors.
The exchange outflows indicate accumulation
In recent weeks, on-chain data was one of the most compelling arguments in favor of Ethereum. According to Ali Martinez, nearly $800,000,000 worth of ETH or 500,000 Ethereums left the centralized exchanges in just seven days.
The large amount of withdrawals from the exchange market is often seen as an indicator that investors are not planning to sell their assets immediately, but rather intending to keep them in stock. If demand is stable, falling exchange balances may reduce the short-term pressure to sell.
Martinez called the move a possible accumulation signal. He also cautioned that Ethereum’s price could fall further, before reaching a market bottom.
His downside scenario suggests ETH might return to levels close to $700 if the wider market condition deteriorates.
Technical indicators are bearish
Ethereum’s Daily chart is showing a downtrend. After reaching a high of $5,000 in late 2013, the asset produced lower highs, and lower lows.
Relative Strength Index is currently near 32. This puts it close to the oversold zone. Although this indicates a strong sell-off, it doesn’t confirm the trend is changing. During bear markets, assets can be oversold.
MACD is also in the negative zone and below signal line. While the bearish trend has been slowed down, there hasn’t yet appeared a bullish crossover. A capitulation surge, which is usually seen at major market bottoms, has not been observed in the trading volume.
Iran deal hopes add a macro catalyst
Ethereum’s future is also linked to the broader market mood. Earlier today, crypto.news reported Trump stated that a deal with Iran on peace could be reached Sunday, which would lead to a reopening of Strait of Hormuz. Iran says the agreement could take a little longer to be finalized.
Crypto analyst Michaël van de Poppe argued that a successful agreement could send liquidity back toward risk assets, including cryptocurrencies. Reduced geopolitical tensions and pressure on the energy market could increase investor interest in digital assets.
This macro-background arrives for Ethereum at a moment when data on the blockchain points towards accumulation, while technical indicators are still weak. The combination of the two leaves ETH trapped between a growing interest in long-term investments and a market that is still dominated by caution.
Whether Ethereum’s current lows represent the start of a new recovery or merely another stop in its descent may be determined by how the risk sentiment evolves over the coming weeks. It will also depend on whether the buyers continue to remove ETH from the exchanges at this pace.
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Source: crypto.news
