Ethereum has slipped to $2,100, marking a 55% retreat from its August 2025 all-time high. On-chain data and capital flows both signal that ETH is navigating its toughest period in five years.
Bankless Co-Founder Dumps ETH, Sentiment Turns Bearish
David Hoffman, co-founder of the Bankless platform and a former vocal Ethereum booster, has liquidated all his personal ETH holdings. He cited recent crypto trends and a string of cyberattacks in April as reasons for stepping away. His colleague Ryan Adams also said he would scale back direct involvement with Bankless, though maintaining a positive view on crypto and ETH overall. Bankless' public wallet now holds less than 1 ETH, underscoring the shift.
Observers on social media interpret these moves as Ethereum losing favor while rival networks gain traction.
Weak Technicals: Low Dominance, Low Open Interest
A Messari report shows Ethereum's market dominance fell below its baseline in May and has recovered to only 4.2%. While Ethereum remains historically important for DeFi and stablecoin transfers, market interest lags.
As of May 22, the fear-and-greed index reads “neutral” for ETH. Futures open interest stands at about $12.3 million, near yearly lows. Despite derivatives activity showing some resilience versus the 2022–2023 bear market, persistent spot selling pressure prevents ETH from establishing higher price ranges.
Governance Turmoil and Rising Rivals
Santiment analysis reveals traders and Ethereum supporters have grown increasingly pessimistic. Departures from the Ethereum Foundation have raised questions about the network's long-term direction. Although the Foundation briefly promoted Layer-2 scaling solutions, attention has shifted back to Layer-1 scaling.
Meanwhile, BNB Chain, Solana, and Hyperliquid are attracting users with faster speeds and lower fees. Tom Lee of Fundstrat attributes negative sentiment to shrinking liquidity but still sees Ethereum as a foundational platform for global finance and AI.
Structural Headwinds: Record-Low Gas Fees Fuel Inflation
Ethereum's gas fees have sunk to record lows, boosting the weekly minting rate of new ETH. The network now experiences annual inflation of 0.82%. Staking partially offsets this, but validators often need to sell or lend ETH for profits. A lack of fresh narratives has driven investors to explore alternative blockchains.
From whale outflows to key influencers reallocating attention, Ethereum is facing a challenging chapter. Both retail and large holders are seeking new opportunities as ETH confidence hits a five-year low.