Ethereum price continued its downtrend in April as its demand waned. ETH dropped to a low of $1,383, its lowest level since March 2023. At its lowest level, the coin was down by 66% from its highest level in November last year.
Ethereum has performed significantly worse than other cryptocurrencies. The ETH/BTC pair plunged to a low of 0.02, its lowest level since 2020. It has retreated by over 78% from its pandemic high, and is on track to hit its all-time low soon.
This article provides an Ethereum price forecast for May and why it may crash to $1,000 during the month.
Polymarket traders see the Ethereum price crashing to $1,000
Polymarket has become one of the fastest-growing prediction markets, with its traders predicting that Trump would win the election. Now, most of these traders believe that the ETH price will crash to $1,000 this year.
Odds of the coin falling to $1k are 39%, while those of the coin rising to $4,000 are 23%. The odds of Ethereum reaching $5,000 this year are 16%.
Another Kalshi poll shows that odds that the Ethereum price will hit $4,500 this year are just 11%.
Furthermore, analysts believe that Ethereum may be overtaken as the second-largest cryptocurrency in the world. Assuming that its price continues falling, and if the XRP price rebounds as expected, there is a likelihood that this will happen.
Why ETH price is crashing
There are a few reasons why Ethereum price has been in a strong downtrend this year. First, data shows that the network is losing market share in industries like decentralized finance and gaming. Top networks like Base, Arbitrum, Sonic, and Solana are disrupting it.
Most of the competition is coming from Solana, a network that is now making more money than Ethereum because of its role in the meme coin industry. Solana’s meme coin ecosystem is now handling valued at over $10 billion, with the top ones being TRUMP, Bonk, Fartcoin, and Pudgy Penguins.
Some top players in the Ethereum network are also launching their independent layer-2 chains. The most notable one is Uniswap, which launched Unichain a few months ago. Today, this chain is growing market share and has just flipped networks like Arbitrum, Tron, Avalanche, and Polygon.
Furthermore, Ethereum fees have plummeted to a record low, indicating that the network is no longer as active as it was a few years ago. Indeed, Ethereum has made less than $250 million his year, and has been overtaken by networks like Lido, Solana, and Uniswap.
Read more: Ethereum price crash explained: key charts behind the ETH plunge
Ethereum ETFs are also not seeing enough traction by Wall Street investors. These funds have all attracted just $2.5 billion in inflows since their inception. While Bitcoin ETFs ae eight months old, they have attracted almost $40 billion in assets.
Ethereum price forecast
The weekly chart shows that the ETH price has been under pressure in the past few months. It has dropped below the 61.8% Fibonacci Retracement level at $1,913.
The coin formed a triple-top chart pattern at $4,078. It has now dropped below the key support at $2,130, the lowest swing in 2024. The depth of this triple-top pattern is about 48%.
Therefore, measuring the same distance from the neckline at $1,090, its lowest level in July 2022. A break above the key resistance at $2,130 will invalidate the bearish outlook as it will signal more gains ahead.
Read more: Ethereum price prediction: why ETH crashed, and its outlook
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