Ethereum Plunges to Lowest Level Since May as Six-Month Losing Streak Deepens

Ethereum dropped as much as 10 percent on Thursday to $1,911, its lowest intraday price since May 2025. The second-largest cryptocurrency is now down more than 20 percent in February alone, extending what has become a historic slide for the token that once traded above $4,000 during the bull market peak.

A Record Losing Streak

Ether has now posted negative monthly returns every month since September, marking six consecutive months of losses. According to Bloomberg data, this is the longest such streak since the firm began tracking the token in 2018. The sustained decline has erased billions of dollars in market value and shaken confidence among long-term holders.

The sell-off accelerated sharply on February 1 when a massive liquidation event wiped out more than $2.5 billion in leveraged positions across the broader crypto market. Ethereum bore a disproportionate share of the pain, falling nearly 25 percent over the following seven days as forced selling cascaded through exchanges.

ETF Outflows and Institutional Retreat

Institutional investors who fueled much of the 2025 rally have turned increasingly bearish on Ethereum. Spot Ethereum ETFs have recorded persistent outflows in recent weeks, with major players including BlackRock reportedly moving large amounts of ETH to exchanges, a move widely interpreted as preparation for further selling.

The shift in institutional sentiment has removed a crucial source of demand that had previously supported prices. Without steady ETF inflows acting as a floor, Ethereum has become increasingly vulnerable to cascading sell-offs driven by leveraged traders and short-term speculators.

Macro Headwinds Mount

The broader macroeconomic environment has added to Ethereum's troubles. The nomination of Kevin Warsh to succeed Jerome Powell as Federal Reserve chair has triggered a hawkish repricing across risk assets. Traders now expect tighter monetary policy for longer, dampening the appetite for speculative investments like cryptocurrencies.

The reversal in sentiment stands in stark contrast to late 2025, when optimism around rate cuts and crypto-friendly regulation had pushed both Bitcoin and Ethereum to record highs. That narrative has now collapsed under the weight of sticky inflation data and growing geopolitical uncertainty.

Technical Outlook Turns Grim

Analysts say Ethereum's price action leaves the token trapped in a firm downtrend with negative momentum across all major timeframes. The $2,000 level has emerged as a critical psychological support, while any relief rallies are expected to face heavy resistance near $2,800.

Most forecasters expect Ethereum to trade within a $2,000 to $2,500 range through February as the market attempts to find a bottom. A break below $1,900 could open the door to a decline toward $1,500, a level not seen since early 2024.

A Silver Lining for Bulls

Despite the near-term carnage, some analysts maintain a constructive long-term view. Institutional adoption of Ethereum's smart contract platform continues to grow, with the tokenization of real-world assets emerging as a major use case that could drive demand in the next cycle.

Regulatory clarity in the United States and Europe is also progressing, which proponents argue will eventually unlock a wave of institutional capital that has been sitting on the sidelines. Whether that narrative can survive another sustained downturn, however, remains an open question for a market that has learned the hard way that sentiment can shift overnight.