Ether price took a 5% hit on Tuesday, erasing the last 12 days of gains and triggering $170 million in liquidations of bullish leveraged positions. The broader crypto market is struggling, and ETH is bearing the brunt of it.
Demand for bearish ETH positioning surged briefly as perpetual futures funding rates flipped deeply negative — shorts were literally paying to keep their positions open. That’s not a vote of confidence.
Ether dropped 20% over the past 30 days, slightly worse than the broader crypto market’s 17% decline. Part of the pressure ties to geopolitical uncertainty around US-Iran negotiations, plus ongoing caution about the massive costs of AI infrastructure build-out.
DeFi activity has slumped across the board. Multiple projects have shut down, and total value locked across all blockchains shrank 23% in three months. That said, Ethereum still dominates: its $38 billion in DeFi TVL represents 53% market share. Include layer-2 solutions and the ecosystem accounts for 43% of all DEX volume.
But there are real concerns. Ethereum’s 30-day fees came in at just $11 million. BitMine holds $9.3 billion in unrealized losses on its ETH reserves. US-listed spot Ether ETFs posted net outflows for six consecutive weeks, with $910 million leaving since mid-May.
The Ethereum Foundation added to the gloom, laying off 20% of its workforce as part of a 40% budget cut. The EF is transitioning to a leaner model, targeting 5% annual spending from its treasury by 2030.
Still, Ethereum’s development doesn’t depend solely on the EF. The upcoming Glamsterdam protocol upgrade aims to reduce centralization by splitting block creation and improving execution through parallel transaction processing.
ETH isn’t doomed — its institutional dominance in DeFi remains strong. But the short-term picture is rough, and traders are clearly nervous.
