Ethereum currently presents a study in contrasts. While a major financial institution makes a significant move onto its blockchain, the asset’s price faces substantial headwinds from leveraged trading and broader economic concerns. This divergence highlights the complex forces shaping the world’s leading smart contract platform.
JPMorgan Embraces Public Blockchain with Tokenized Fund
Amid recent price volatility, a pivotal development emerged on the fundamental front. JPMorgan Asset Management has launched its first tokenized money market fund directly on the public Ethereum blockchain. The “My OnChain Net Yield Fund” (MONY) represents a concrete step toward institutional blockchain utilization.
Operated through the Kinexys digital assets platform, the fund permits qualified investors to subscribe and redeem using stablecoins or fiat currency. A notable commitment is JPMorgan’s own investment of $100 million into the vehicle. This substantial capital allocation signals the financial giant’s active deployment of Ethereum’s public infrastructure, moving beyond mere experimentation.
This initiative reinforces Ethereum’s dominant position in the Real World Assets (RWA) sector, which involves tokenizing traditional assets like funds and bonds. Ethereum currently commands approximately a 70% market share in this segment, with over $12 billion in Total Value Locked (TVL). The MONY fund aligns with a growing Wall Street trend of migrating conventional financial products on-chain.
Price Action Under Pressure from Liquidations
Contrasting with this institutional progress, Ethereum’s market performance has weakened. ETH is trading near $2,924, firmly below the psychologically significant $3,000 level. The asset has declined roughly 6% over the past week and nearly 8% over the monthly period, sitting more than a third below its 52-week high.
A primary catalyst for the recent downturn is a wave of forced liquidations in derivatives markets. Across the broader crypto sector, nearly $400 million in positions were liquidated within a 24-hour window. Ethereum traders were disproportionately affected, with approximately $174 million in ETH positions closed. Over 90% of these were long bets, indicating that highly leveraged wagers on rising prices were abruptly unwound.
From a technical perspective, the short-term outlook appears challenged. The price trades notably below the 50-day moving average, situated around $3,244, which now acts as resistance. The Relative Strength Index (RSI) reads 42, below the neutral 50 line, suggesting diminished buying momentum. Chart analysts identify support zones just above $2,900 as critical; a breach could trigger additional selling pressure.
On-Chain Metrics Reveal a Shifting Ecosystem
Layer-2 Networks Reshape Fee Economics
On-chain data reveals significant shifts in Ethereum’s economic activity. The Ethereum mainnet’s annualized revenue has fallen sharply in 2025, dropping from approximately $2.52 billion at the start of the year to around $604 million currently.
This decline is largely attributed to the rapid ascent of Layer-2 scaling solutions like Base, Arbitrum, and Optimism. These networks now handle a substantial portion of transaction volume, retaining the majority of associated fees. Estimates suggest only about 8% of total fees generated across the ecosystem currently flow back to the Ethereum mainnet for final settlement. This dynamic confirms the success of Ethereum’s scaling roadmap while simultaneously pressuring the base layer’s direct revenue in the near term.
Should investors sell immediately? Or is it worth buying Ethereum?
Major Holders Demonstrate Long-Term Conviction
Simultaneously, blockchain data indicates strong accumulation by large-scale investors, signaling long-term confidence. BitMine Immersion (BMNR), the world’s largest publicly traded ETH treasury holder, has further expanded its holdings. The firm now possesses 3.97 million ETH, a stash valued at over $12.2 billion.
Its most recent acquisition added 102,259 ETH, worth approximately $320 million. This pattern of accumulation suggests that major market participants view the current price weakness as a buying opportunity to strengthen their positions rather than a reason to exit.
Macroeconomic Headwinds and Regulatory Context
Ethereum’s pressure is not occurring in isolation but forms part of a broader cryptocurrency market correction. Bitcoin, for instance, recently slipped below $87,000. Macroeconomic uncertainties are central to current investor concerns.
Market attention is focused on the Bank of Japan, which is scheduled to discuss a potential interest rate hike between December 18th and 19th. Historically, BoJ rate increases have often precipitated the unwinding of yen carry trades, a process where investors close out leveraged positions in riskier assets—including cryptocurrencies.
On the regulatory front, the landscape in the United States shows tentative signs of improvement. Reports indicate that under the new administration, the SEC has paused or closed approximately 60% of older crypto enforcement cases. This trend could reduce regulatory headwinds heading into 2026, though it does little to alleviate short-term market volatility.
Conclusion: Near-Term Caution Versus Long-Term Narrative
In summary, Ethereum is caught between two competing narratives. The short-term picture is dominated by a weak market, significant leverage unwinding, a price below key moving averages, and fragile technical levels.
Opposing this is a story of structural advancement: JPMorgan’s landmark tokenized fund, Ethereum’s growing dominance in the RWA sector, and the steadfast accumulation by large holders like BitMine Immersion.
In the immediate future, the support zones near $2,900 and the upcoming policy decision from the Bank of Japan will likely dictate price direction. For the medium to long term, the critical question is whether the accelerating institutional adoption of Ethereum—through tokenized funds and a maturing Layer-2 ecosystem—will ultimately overshadow the present period of price decline.
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