Ethereum Sheds $100 Billion in Market Cap During a Relentless Weeklong Slide

Ethereum’s market capitalization has dropped by nearly $100 billion in a week of relentless declines, reflecting broader weakness in the cryptocurrency market. The price of ether has fallen by more than 30% in the past month, intensifying concerns over the health of the second-largest digital asset. BitMine, one of the largest corporate holders of Ethereum, has seen its unrealized losses swell to $6.6 billion as ETH prices retreat from their late 2025 peak.

BitMine chairman Tom Lee has defended the firm’s treasury strategy, arguing that unrealized losses during market downturns are an expected part of holding Ethereum over the long term. Lee has pushed back against claims that large ETH holdings will cap prices or trigger forced selling. He likened the situation to index ETFs, which also post losses during broad market declines.

The broader crypto market has also experienced sharp drawdowns. Total crypto market capitalization has fallen by nearly $468 billion since late January as Bitcoin slid below $73,000. Ether dropped to an intraday low of $2,156 before rebounding slightly. Spot Ethereum ETFs have seen significant outflows, with more than $1.3 billion in redemptions since mid-2025.

Why Did This Happen?

Large Ethereum treasuries have become a focal point of the recent market downturn. BitMine’s holdings of roughly 4.285 million ETH — or about 3.5% of the circulating supply — have seen their market value decline from a peak of nearly $14 billion to under $10 billion. The drawdown has reignited debate around the role of corporate treasuries in influencing market dynamics.

Critics argue that large institutional positions could eventually become sources of selling pressure if holders are forced to liquidate to fund operations. Proponents, however, argue that such treasuries act as long-term, index-like exposure vehicles rather than short-term trading positions. BitMine has continued to add to its holdings, including a recent purchase of nearly 42,000 ETH.

How Markets Responded

The selloff has had a ripple effect across the crypto market. Total market capitalization has fallen from a high of $3.11 trillion to $2.64 trillion in less than a week, according to CoinGecko. Bitcoin has fallen nearly 40% from its peak, while Ethereum has lost more than half its value from September highs.

The derivatives market has also been hit hard. Over $306 million in leveraged positions were liquidated in a single 24-hour period, with longs accounting for the majority of the losses. Open interest dropped by 4.14% as traders closed positions to cut losses. Spot ETF outflows have also accelerated, with Bitcoin-linked products recording $272 million in redemptions on a single day.

Institutional activity has remained mixed. Ark Invest has increased its exposure to BitMine shares despite the company’s large unrealized losses. Strategy, another major crypto treasury holder, has also seen its Bitcoin holdings briefly turn negative as the price of BTC slid below $75,000.

What Analysts Are Watching

Technical analysts are closely monitoring Ethereum’s price behavior around key support levels. The $2,156 intraday low marks a critical threshold, with a break below that level potentially triggering a move toward $1,800. The Supertrend indicator remains bearish, suggesting further downward pressure unless there is a significant rebound in institutional buying.

On-chain data also shows continued accumulation by large holders. Whale addresses have added more than 1 million ETH to their balances in recent weeks despite the price decline. The accumulation suggests confidence in Ethereum’s long-term prospects, even as the market remains in a consolidation phase.

Analysts are also watching for signs of liquidity stress. Ethereum has been trading within a five-year range, with strong demand historically observed at the $950 level. A sustained move below $2,700 could confirm a bearish bias and trigger further selling pressure.

The debate over corporate treasuries and their impact on price has also intensified. While BitMine argues that its strategy is designed to outperform over the full market cycle, critics remain concerned about the potential for forced selling. The firm's recent decision to expand its share authorization from 500 million to 50 billion has raised dilution concerns among investors.

Market observers are also watching for regulatory and macroeconomic developments. The recent selloff has been attributed in part to risk-off sentiment, with investors rotating capital into safer assets. A shift in macro conditions or renewed institutional adoption could help stabilize the market and provide a floor for Ethereum’s price.