Ethereum Updates: ETH Rebounds from $3,300 While Experts Warn of Potential Drop to $1,700

Ethereum has bounced back above $3,300 in recent sessions, narrowing its 24-hour decline to 8.98% based on the latest figures. The digital asset advanced 2.72% to reach $3,859.45, ending a three-day slide and registering its biggest single-day gain since October 26, 2025, according to TradingView.

is still down 1.98% over the past week, highlighting persistent volatility across the crypto sector. Since the start of the year, ETH has risen 15.39%, but it remains 22.11% below its record intraday peak of $4,955.23 set in August 2025.

Market analysts have responded to these price movements with mixed opinions. Well-known crypto commentator Ali Martinez cautioned that Ethereum could face a "worst-case scenario," potentially dropping to $1,700 by mid-2026 if it fails to reclaim the $4,000 mark, as reported by Yahoo Finance.

Martinez pointed to bearish technical patterns, such as the inability to sustain levels above $3,800. "Should ETH fail to maintain this support, a decline to $2,400 or even $1,700 is possible," he noted, suggesting a potential 46.4% drop from current prices.

Ethereum's challenges are further intensified by significant outflows from spot exchange-traded funds (ETFs), which have heightened institutional caution. According to SoSoValue, Ethereum ETFs saw $136 million in outflows just on Monday, with BlackRock's ETHA accounting for $82 million of that, as reported by FXStreet.

While total net inflows for U.S.-listed ETH ETFs have reached $14.23 billion, the recent trend points to declining interest from both large institutions and individual investors. Retail sentiment has also weakened, with futures open interest (OI) falling to $44.72 billion from a high of $63 billion in October. This reduction indicates that traders are closing long positions and increasingly betting against ETH, adding to the selling pressure.

Wider market dynamics are also weighing on prices. The Federal Reserve's recent suggestion that further rate cuts may be postponed has unsettled investors, according to TradingView.

Ongoing speculation—such as rumors involving Wintermute—has further fueled negative sentiment. In addition, spot ETFs have experienced four straight days of outflows, with $327 million exiting the sector according to Crypto.news. While altcoins such as and have also declined, some altcoin ETFs have seen inflows, suggesting there are still areas of strength amid the broader downturn.

Technical analysis continues to indicate a bearish trend. Ethereum's daily chart reveals a negative MACD, and the OI-weighted funding rate remains low at 0.0038%, showing little bullish momentum. Experts warn that unless a major catalyst—such as regulatory progress or increased adoption—emerges, Ethereum may continue to face downward pressure.