Institutional capital flows and weakening market momentum are converging at a sensitive time for Ethereum (ETH), with the second-largest cryptocurrency at a potential tipping point.
A major portfolio adjustment by Harvard University’s endowment, along with a drop in price and a change in on-chain signals, has intensified the debate over whether Ethereum price is nearing its bottom or poised for further decline.
Harvard Management Company has reduced its exposure to Bitcoin exchange-traded funds while initiating its initial allocation to an Ethereum ETF, according to a recent regulatory filing. This move comes as ETH is trading below the psychological $2,000 level, with this price range increasingly acting as resistance rather than support.
ETH's price trends to the downside on the daily chart. Source: ETHUSD on Tradingview
Harvard University’s crypto rebalance suggests organizational repositioning
During the fourth quarter of 2025, Harvard University reduced its stake in the BlackRock Bitcoin ETF by approximately 21%, reducing its holdings to approximately $265.8 million. At the same time, the fund purchased approximately $87 million worth of shares in BlackRock’s Ethereum Trust, marking its first direct exposure to Ether through an ETF.
The correction comes amid a broader crypto market rebound that saw Bitcoin plummet from its late 2025 highs and Ethereum fall along with it. Analysts have suggested that this change may reflect a portfolio rebalancing rather than a simple change in sentiment and may be related to the unwinding of complex institutional trading strategies.
Still, the move is consistent with broader institutional action. The total ownership of major Bitcoin ETFs has declined significantly over the same period, according to filings, indicating investors may be reevaluating their risk exposure while exploring alternative crypto allocations.
Despite these changes, crypto ETFs remain a small portion of Harvard University’s $56.9 billion endowment, accounting for less than 1% of its total assets.
Ethereum price stuck below key resistance
Ethereum price has struggled to regain momentum after a sharp drop. The asset has recently hovered around $1,980 after falling about 40% last month, still well below its 2025 peak of $4,900.
Technically, the market continues to make lower highs and lower lows, keeping the overall trend bearish. Analysts are keeping an eye on the $2,150-$2,200 range, which would need to be regained to signal a potential reversal. If the support around $1,900 fails to hold, the downside price target could be between $1,700 and $1,600.
Derivatives data shows a decline in open interest and trading volume, suggesting traders are reducing risk rather than aggressively positioning for a breakout. ETF flows have been mixed, with recent net outflows highlighting cautious institutional sentiment in the short term.
On-chain data and network fundamentals provide mixed signals
Although Ethereum price trends remain weak, blockchain data paints a more nuanced picture. Large holders continue to accumulate Ether, adding significant balances to their Whale wallets despite the price drop. Accumulation addresses now hold record amounts of ETH.
Network usage has also been enhanced. Ethereum recently processed a record 17.3 million transactions per week, while median fees have fallen to a fraction of a dollar, demonstrating increased efficiency and continued user activity.
Meanwhile, Ethereum co-founder Vitalik Buterin reiterated that the network’s long-term value lies in its neutrality and resistance to censorship, emphasizing open participation regardless of individual viewpoints. His comments come as the debate over decentralization and the direction of the ecosystem intensifies.
Cover image from ChatGPT, ETHUSD chart from Tradingview
editing process for is focused on providing thoroughly researched, accurate, and unbiased content. We adhere to strict sourcing standards, and each page is carefully reviewed by our team of top technology experts and experienced editors. This process ensures the integrity, relevance, and value of your content to your readers.