Key Takeaways
- Ethereum trades near $2,840 with notable weekly and monthly declines.
- SWIFT’s adoption of Linea boosts Ethereum’s real-world relevance.
- Whale accumulation and Layer-2 growth offer potential bullish signals.
- Resistance near $2,900–$3,200 remains the level to watch.
Ethereum Faces Pressure as Layer-2 Growth and SWIFT Pilot Signal a Shift
Ethereum’s market performance in late 2025 paints a picture of sharp volatility mixed with strategic, long-term optimism. While the cryptocurrency trades around $2,840, recent price action shows a +0.61% daily uptick, contrasted by a -11.76% weekly and 27% monthly decline. Yet behind the numbers, deeper structural developments hint at possible momentum building beneath the surface.
Also Read: Ethereum Hits Danger Zone: Can Long-Term Investors Still Win Big?
Institutional Outflows Clash with Real-World Adoption
A major headline this week is the $505 million institutional outflow, the largest ever recorded for Ethereum. For many traders, this reinforces concerns about short-term downside pressure, especially with ETH currently sitting below key moving averages and facing heavy resistance between $2,900 and $3,200.
However, long-term fundamentals are telling a different story.
SWIFT — the backbone of global banking — selected Ethereum Layer-2 solution Linea for its 2025 payments pilot, choosing it over established competitors such as XRP. This move signals a vote of confidence in Ethereum’s ability to support fast, scalable financial infrastructure, reinforcing the network’s strategic relevance beyond speculation.
Whale Activity and Network Growth Hint at a Reversal
Despite institutional selling, whale wallets have begun accumulating again. Historically, this behavior often precedes trend reversals, suggesting that experienced investors may anticipate improvements tied to Ethereum’s scaling roadmap.
Also Read: Ethereum ETFs Are Surging—So Why Is the Price Crashing?
Network usage is also climbing. Renewed attention on emerging Layer-2 protocols and upcoming scalability upgrades is pulling users back to the ecosystem, especially as solutions promise lower gas fees and faster settlement — key pain points that have slowed Ethereum adoption in previous cycles.
Technical Setup: Bounce or Breakdown?
ETH’s current position below its moving averages indicates lingering bearish sentiment. A potential rebound toward $2,900–$3,200 remains possible if broader market conditions improve or if bullish catalysts materialize from the scaling ecosystem. Without such triggers, bearish pressure may continue dominating the short term.
Short-Term Pain, Long-Term Potential
Ethereum is navigating a complicated market moment — one defined by declining prices but strengthening fundamentals. With whale accumulation, rising network activity, and a major SWIFT pilot backing its Layer-2 ecosystem, ETH’s long-term narrative remains compelling. For traders and investors, the key is balancing short-term caution with the opportunities unfolding in Ethereum’s expanding infrastructure.
