Ethereum has seen a dramatic slump in the past few days, with its price plummeting after a failed attempt to break through the $2,500 barrier.

Currently, the altcoin is testing critical support levels around $2,000, extending its losses for the year to a staggering 36%. If it continues to fall, Ethereum is on track to record its worst-ever first quarter performance, with some analysts predicting that a dip below $1,600 could make this its most disastrous quarter yet.

In a little over three days, Ethereum’s price dropped more than 14%, with significant liquidations pushing $209 million in the last 24 hours alone. After starting 2025 strong at around $3,300, the cryptocurrency has seen a major retreat, leaving many investors concerned.

A major whale, reportedly shorting Ethereum with significant leverage, has made massive profits from this decline. In fact, the whale’s unrealized gains have surpassed $81 million as the price continues to drop.

The situation has worsened for Ethereum’s ETFs, particularly BlackRock’s iShares Ethereum Trust (ETHA), which has experienced over $164 million in outflows since February.

This lack of institutional confidence is evident, with ETHA shares down nearly 40% since the start of the year. Peter Schiff, a notable critic of cryptocurrency, expressed skepticism, claiming that Ethereum still has far to fall despite short-term hype.

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