Ethereum declines by about 3% despite early excitement over cryptocurrency developments and strategies.
by VT Markets
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Jul 25, 2025
Ethereum fell by about 3% in one day. Early in the week, there was excitement in the cryptocurrency market due to news about a strategic Bitcoin reserve and plans to gather at least $500 million for more Bitcoin purchases.
As the week went on, the excitement faded. Ethereum and other cryptocurrencies began losing ground, reflected in its current drop in value.
This weakness indicates that bullish momentum is weakening. The market did not respond strongly to positive news, such as the SEC wrapping up its investigation into Ethereum 2.0, which hints at some fragility. This lack of reaction shows traders may be cashing out or hesitating to take new long positions.
Given this uncertainty, buying put options seems like a smart way to protect against further declines toward the $3,000 support level. Recent data shows that the put-to-call ratio for Ether options has climbed above 0.60, highlighting a growing bearish sentiment among traders. Although implied volatility is high, making options pricier, the expense may be worth it for protection.
We are also seeing a decline in open interest for ETH futures, which has dropped from over $17 billion to around $15.5 billion in the past two weeks. This decline suggests that money is leaving the market and that bullish confidence is decreasing. It might be wise to take a cautious approach by considering small short positions in the futures market with tight stop-losses.
Historically, after periods of intense hype—like the lead-up to the Merge in 2022—digital assets have often faced sharp corrections once the excitement fades. The current situation feels similar, where the initial enthusiasm about spot ETFs is now being tested by real market conditions. This pattern suggests we could see either a phase of price consolidation or a further drop in the coming weeks.
by VT Markets
Jul 25, 2025
Insights 
VT 
