- WLFI, backed by Trump, faced losses as Ethereum’s price slumped, but long-term confidence remained strong
- Ethereum has 21 days to avoid a historic four-month losing streak and restore market confidence.
Ethereum [ETH] is at a pivotal moment.
ETH investors have faced significant losses this year, with WLFI — an institutional investor backed by President Donald Trump — among those hit hardest.
ETH makes up 65% of WLFI’s crypto portfolio, and the recent downturn has left them with a staggering $110 million decline. While some investors see the dip as a buying opportunity, others remain cautious.
Despite the losses, long-term trends suggest growing confidence in Ethereum’s future, with $1.8 billion worth of ETH leaving exchanges last week.
As Ethereum enters a crucial 21-day window, all eyes are on whether it can avoid a historic fourth consecutive month of losses.
Institutions bleed as Ethereum price slumps
Source: Arkham
Ethereum’s downturn has left major institutional wallets reeling — none more so than Trump-backed World Liberty Fi.
With ETH comprising over $15 million of WLFI’s $77 million portfolio, the wallet has seen a 6.15% daily loss, driven largely by a 5.78% plunge in ETH alone.
WLFI’s broader holdings — including STETH and WBTC — have followed suit, deepening its unrealized losses. The wallet’s exposure to Ethereum-linked assets now exceeds 65%.
Source: TradingView
ETH was trading near $1,901 at press time, rebounding slightly but still a deep dive. On-chain indicators painted a grim short-term picture.
The RSI hovered around 31, signaling oversold conditions, while the MACD remained deeply negative, suggesting persistent bearish momentum. OBV has flattened, indicating weak buying pressure.
While this could spark a technical bounce, the prevailing trend still leant bearish, and Ethereum must reclaim $2,100 quickly to escape a further downtrend.
ETH: Long term accumulation trends
Source: IntoTheBlock
Despite ETH’s recent price weakness, long-term holders appear unfazed. Over $1.8 billion worth of ETH exited centralized exchanges last week alone, reflecting a growing preference for self-custody and long-term storage.
Historically, such outflows have preceded recovery phases, as seen during the 2022 bottom.
The latest data mirrors that pattern, with whales and institutional players accumulating during dips rather than capitulating.
While short-term sentiment remains cautious, these net outflows suggest deep-rooted conviction in Ethereum’s future — from its upcoming upgrades to its central role in DeFi and tokenization infrastructure.
For seasoned investors, the selloff is less a red flag and more a discounted entry point.
The 21-day challenge
March could be Ethereum’s last chance to snap a rare four-month losing streak — a pattern not seen since the 2018 bear market.
With February delivering a strong +46.28% rebound, Ethereum must hold momentum through March’s remaining 21 days to avoid an unsettling red stretch that could shake market confidence.
Source: X
Historically, March has been favorable for ETH, boasting a 20.03% average return and a 9.96% median. But 2024’s back-to-back declines have eroded bullish sentiment.
If Ethereum fails to finish this month in the green, it risks reinforcing a psychological downtrend that could spook retail traders and delay any sustained breakout.
