- WLFI, backed by President Trump, suffered losses when the price of Ethereum dropped, but long-term confidence remains strong.
- Ethereum has 21 days to avoid a historic four-month losing streak and regain market confidence.
Ethereum [ETH] is at a turning point.
ETH investors have had to face major declines this year, with World Liberty Fi (WLFI) — an institutional investor backed by former President Donald Trump — suffering the biggest losses.
ETH accounts for 65% of WLFI's crypto investment portfolio, and the recent decline has caused them to lose $110 million. While some investors see the drop as a buying opportunity, many remain cautious.
Despite the losses, the long-term trend shows increasing confidence in the future of Ethereum, with $1.8 billion worth of ETH leaving centralized exchanges in the past week.
As Ethereum enters a critical 21-day period, all eyes are on whether ETH can avoid a fourth consecutive month of losses.
Institutions suffer losses as Ethereum price drops
Source: Arkham
The value of Ethereum has caused major institutional wallets to suffer losses — especially World Liberty Fi, which was backed by President Trump.
With ETH accounting for over $15 million in WLFI's $77 million investment portfolio, this wallet has seen a daily loss of 6.15%, mainly due to a 5.78% drop in ETH.
WLFI's other holdings — including STETH and WBTC — also declined, increasing their unrealized losses. The wallet's exposure to Ethereum-related assets now exceeds 65%.
Source: TradingView
ETH is trading near $1,901 at the time of writing, recovering slightly but still at a low level. On-chain indicators paint a bleak short-term picture.
The RSI is around 31, signaling oversold conditions, while the MACD remains deeply negative, indicating a prolonged downtrend. The OBV is flat, suggesting weak buying pressure.
While this may trigger a technical rebound, the current trend remains bearish, and Ethereum needs to quickly break above $2,100 to avoid further downside.
ETH: Long-term accumulation trend
Source: IntoTheBlock
Although the recent ETH price has been weak, long-term holders appear unaffected. Over $1.8 billion worth of ETH has left centralized exchanges just in the past week, reflecting a trend towards secure and long-term storage.
History shows that such outflows often precede recovery phases, as seen in the 2022 bottom.
The latest data reflects this pattern, with whales and institutional investors accumulating during the price decline rather than panic selling.
While short-term sentiment remains cautious, these outflows suggest deep-rooted confidence in Ethereum's future — from upcoming upgrades to its central role in the DeFi and crypto infrastructure.
For seasoned investors, this sell-off may not be a red flag but an opportunity to buy at attractive prices.
The 21-day challenge
March could be Ethereum's last chance to escape a rare four-month losing streak — a pattern not seen since the 2018 bear market.
With a strong +46.28% recovery in February, Ethereum must maintain its momentum over the remaining 21 days of March to avoid losses that could shake market confidence.
Source: X
History shows that March is usually favorable for ETH, with an average return of 20.03% and a medium of 9.96%. But the consecutive declines in 2024 have dampened expectations of a price increase.
If Ethereum does not end this month with gains, it risks entrenching a bearish psychological trend that could scare off retail traders and delay any sustainable growth.
