Ethereum News Today: Ethereum Dives 5% as Altcoins Crash Amid Inflation Fears and Unstaking Surge

Ethereum (ETH) fell nearly 5% in a single session on August 15, 2025, as broader altcoin markets faced a sharp sell-off amid heightened macroeconomic pressures. The decline came against the backdrop of a broader $80 billion drop in the total cryptocurrency market capitalization over the preceding weeks [1]. The movement was closely linked to a recent surge in unstaking activity from Ethereum validators, which increased the token’s circulating supply and added downward pressure on its price [2].

Bitcoin (BTC), which had previously touched an all-time high of $124,500 on July 14, 2025, fell below $118,000 in the following weeks. This decline was attributed to stronger-than-expected U.S. Producer Price Index (PPI) data, which raised concerns over prolonged inflation and delayed rate cuts by the Federal Reserve [4]. The data, combined with a lack of significant movement following the Trump-Putin meeting on July 14, 2025, reinforced investor caution [1].

Ethereum’s price action mirrored the broader altcoin downturn. The token, which had been on a multi-week rally, struggled to maintain momentum after failing to surpass its 2021 all-time high. While the decline occurred against a backdrop of increased macroeconomic sensitivity, Ethereum continued to attract interest from institutional investors, who maintained a consistent flow of capital into ETH despite the price drop [1].

Smaller-cap altcoins were hit even harder. Solana (SOL), Chainlink (LINK), and Avalanche (AVAX) all fell between 3% and 7% in the same period [1]. Sui (SUI) and HYPE also experienced notable declines, while most minor tokens followed a similar trend. MNT was the lone exception, rising over 10% amid the downturn, signaling some level of market segmentation during volatile periods [1].

Analysts noted that Ethereum’s price sensitivity, combined with its relatively lower market dominance compared to Bitcoin, could lead to deeper corrections. One forecast suggested that ETH could face a 15–20% pullback in the near term, compared to a more moderate 5–10% decline for Bitcoin [5]. Meanwhile, some observers remained optimistic, suggesting that a new all-time high in ETH could drive a broader altcoin rebound [6].

The increase in unstaking activity on the Ethereum network further complicated the market environment. Validator exits and increased token withdrawals added to short-term supply pressure, compounding the effects of macroeconomic headwinds [2]. As the market continues to navigate shifting economic signals and internal dynamics, Ethereum and other altcoins may remain exposed to further volatility.

Source:

[1] Altcoins Crash Led by ETH's 5% Drop, BTC Slips to 5-Day ... (https://cryptopotato.com/altcoins-crash-led-by-eths-5-drop-btc-slips-to-5-day-low-weekend-watch/)

[2] Ethereum News Today: Bitcoin and Ethereum drop 5% amid PPI-driven sell-off and Ethereum unstaking surge. (https://www.ainvest.com/news/ethereum-news-today-bitcoin-ethereum-drop-5-ppi-driven-sell-ethereum-unstaking-surge-2508)

[4] Is a Fed Rate Cut Bet About to Backfire? (https://www.interactivecrypto.com/ether-at-4724-is-a-fed-rate-cut-bet-about-to-backfire)

[5] Crypto Market Faces Major Sell-Off Amid High Inflation Data (https://www.msn.com/en-ae/news/other/crypto-market-faces-major-sell-off-amid-high-inflation-data/ar-AA1Kzead)

[6] Best Altcoins to Buy Before Ethereum Hits $5000 (https://coincentral.com/best-altcoins-to-buy-before-ethereum-hits-5000/)