The second-largest cryptocurrency by market capitalization, Ethereum (ETH), has dropped to its lowest price since 2018. According to CoinDesk's Ethereum Price Index (EPI), ETH fell below $300 for the first time since November 12, 2017, during Monday's trading session at 16:50 UTC.
As of this writing, ETH is trading at an average price of $264.92, marking a 17.42% decline over the past 24 hours. Data from CoinMarketCap shows that ETH has suffered the steepest drop among the top 10 cryptocurrencies, with over $10 billion in market value erased during this period.
ETH has now decisively broken below its 2023 trading price of $289.96 and has fallen 78% from its all-time high of $1,337. The total market capitalization of all cryptocurrencies has also dipped by nearly $15 billion from its daily peak of $219.4 billion, now hovering just above $205 billion.
Could Ethereum Drop to $200?
The broader cryptocurrency market has been in decline, particularly after the U.S. Securities and Exchange Commission (SEC) postponed its decision on a Bitcoin exchange-traded fund (ETF), triggering negative sentiment. Ethereum mirrored this downturn.
Biswa Das, founding partner of crypto quantitative hedge fund BloomWater Capital, noted:
"Some projects liquidated their ETH holdings to cover operational costs amid bearish market conditions. These startups raised significant funds but lacked proper cash management experience, leading to premature sell-offs that exacerbated pressure on the already fragile crypto market."
In 2023, when Ethereum surged from under $10 to over 100 times its value, ETH accounted for 32% of the total crypto market cap—only slightly behind Bitcoin’s 39%. Speculation that Ethereum could overtake Bitcoin as the most valuable cryptocurrency was deemed "frivolous" by analysts. Das added that projects that raised funds at ETH’s peak would be the most desperate to offload their holdings.
ICO Sell-Offs and Market Sentiment
The pressure from ICO liquidations has compounded existing bearish sentiment, driven by fears of tightening regulations and slow adoption. The crypto market’s total capitalization has plummeted from over $800 billion in early 2025 to around $200 billion.
Competition from rival blockchains and concerns over Ethereum’s scalability for mass-market decentralized applications (DApps) have further weighed on ETH’s performance.
"While raising billions, most ICOs failed to deliver viable products—many were outright scams or suffered security breaches," remarked Spencer Bogart of Blockchain Capital Ltd.
Lex Sokolin of Autonomous Research LLP warned in a recent report:
"Assuming $5 billion in ICO liquidations, Ethereum faces sustained downward pressure, worsened by deteriorating market sentiment and low liquidity."
Research platform Santiment tracked Ethereum-based projects and found that startups consumed over 110,000 ETH in the past 30 days alone.
Long-Term Hopes for Ethereum
Despite short-term struggles, analysts remain cautiously optimistic.
"Startups may not profit immediately from ETH, but sustained demand for ICOs and DApp development could fuel a rebound," Das explained. Ethereum remains the leading platform for blockchain-based applications, hosting over 90% of all projects.
Ethereum’s History of Recovery
While ETH’s post-crash recovery record has been mixed, it has shown resilience in 2025:
- February 2–6: ETH dropped 25% from $872 to $649, then rallied 30% to $951.
- April 7: After a steady decline to $370 (a 60% loss), ETH gradually recovered 54% by May 4, peaking at $816.
These rebounds suggest Ethereum retains recovery potential even after severe downturns.
Despite recent declines, many investors remain confident in ETH’s long-term utility as the most widely adopted cryptocurrency for decentralized applications.
FAQs
Why is Ethereum dropping so sharply?
Ethereum’s decline is driven by broader crypto market bearishness, ICO sell-offs, regulatory uncertainty, and competition from rival blockchains.
Will Ethereum recover like it did in early 2025?
Historical patterns suggest ETH can rebound, but recovery depends on market sentiment, adoption, and regulatory developments.
What’s the lowest price Ethereum could hit?
Some analysts warn of a drop to $200 if sell-offs and negative sentiment persist.
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Disclaimer: The content above is for informational purposes only and does not constitute financial advice.
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