According to Quit, vice president of blockchain at Yuga Labs, Ethereum could experience a drastic price drop to $200–$400 if the cryptocurrency market enters a new bear cycle. Even though many view $1,500 as a possible floor for ETH, Quit warns that historical trends suggest an 80–90% drawdown could result in significantly lower prices. Despite this warning, Quit personally remains bullish on Ethereum but suggests investors reevaluate their allocations. Additionally, there are indications that Ethereum whales are preparing for potential price declines, with significant transactions occurring. Ethereum is facing difficulties due to falling network activity, declining institutional demand, and competition from cheaper blockchains. The declining network activity has also caused ETH to lose its deflationary status. The future of ETH's price recovery is uncertain without ETF staking incentives and increased demand from decentralized finance. As of now, Ethereum is trading at around $1,850.



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