Ethereum News Today: Investors Rebalance Portfolios as NFTs and ETH Slide Amid Macroeconomic Uncertainty

Blue chip NFTs have experienced sharp declines as Ethereum (ETH) retreats from record highs, reflecting broader volatility in the digital assets market. The downturn is part of a broader selloff in the crypto space, with major cryptocurrencies struggling to recover from recent gains following Federal Reserve Chair Jay Powell’s dovish remarks at the Jackson Hole symposium. ETH, which had briefly surpassed $4,700 in early August, has dropped nearly 8% in the past 24 hours, trading below the $4,400 level. This decline has significantly impacted high-value NFTs, which are closely tied to the price performance of ETH, as investors rebalance their portfolios amid growing macroeconomic uncertainty.

The selloff accelerated on Monday, as Bitcoin (BTC) also struggled to hold key support levels, slipping back below $110,000 for the first time since late July. BTC is now down more than 11% from its recent all-time high above $117,000, effectively erasing the gains made in the wake of Powell’s speech. The broader altcoin market has followed suit, with Solana (SOL), Dogecoin (DOGE), Cardano (ADA), and Chainlink (LINK) all experiencing losses in the 6-8% range. The pullback has led to nearly $700 million in liquidations across leveraged crypto derivatives, according to CoinGlass data, with long positions accounting for the majority of the losses. This highlights the fragility of leveraged exposure in a rapidly shifting market environment.

The decline in ETH has had a direct impact on high-end NFTs, particularly those listed on major platforms like OpenSea. Blue-chip NFTs, which had seen renewed interest amid ETH’s rally to record levels, have now lost significant value. Collections such as CryptoPunks, Bored Ape Yacht Club (BAYC), and others have seen double-digit percentage drops in floor prices, with some of the largest individual NFTs dropping over 20% in value over the past week. As ETH dips, the value of NFTs denominated in or priced relative to the token naturally follows. Traders and investors who had positioned for a prolonged bull market are now reconsidering their strategies in light of the rapid reversal.

Analysts attribute the selloff to a combination of factors, including macroeconomic concerns such as rising interest rates and inflation, as well as the end-of-August seasonality pattern. Historical data from CoinGlass indicates that September has historically been a weak month for BTC and ETH, averaging losses of 3.77% and 6.42%, respectively. This adds to the growing unease among traders, particularly those who have been long-term bullish on crypto. The market is now testing key psychological levels and support zones, with further downward movement possible if macro conditions fail to improve or if there is a lack of buying interest at these levels.

The market’s downward momentum is expected to continue in the near term unless there is a significant shift in macroeconomic sentiment or a major development in the regulatory or institutional adoption space. In the absence of such catalysts, blue-chip NFTs and ETH appear to remain in a bearish technical environment, with traders closely watching for signs of a reversal. For now, the focus remains on liquidity management and risk mitigation as the market digests recent price action and anticipates the upcoming Fed meeting schedule.

Source: [1] BTC, ETH, DOGE Price News: Declines Pick Up Speed (https://www.coindesk.com/markets/2025/08/25/bitcoin-tumbles-back-to-usd110k-as-crypto-bounce-fails-ether-plunges-8)