The price of ETH dropped on December 16, 2025, due to the combined effects of macro policies, market leverage, ecological security, and other factors. The specific reasons are as follows:

1. The Federal Reserve's interest rate cut expectations were not met: Although the Federal Reserve cut rates by 25 basis points on December 10, Powell was cautious about the future rate cut path and did not release a clear easing signal, resulting in the market's expectations for liquidity easing not being fulfilled. As a risk asset, ETH lost funding support, and the price fell as market sentiment weakened.

2. High leverage positions led to a chain liquidation: The ETH market has a large number of high-leverage trades, with some traders even using extremely high leverage. When the price experiences a slight pullback, it triggers large long positions to be forcibly liquidated, creating a cycle of "price drop—forced liquidation—accelerated decline," which greatly amplifies the drop.

3. The Ethereum ecosystem suffered a security attack: The yETH product under Yearn Finance was exploited by hackers using a vulnerability, resulting in approximately 1000 ETH being transferred. This incident, as a significant security incident in the Ethereum ecosystem, severely undermined investor confidence, leading to panic selling and causing ETH to rapidly plunge in a short period.

4. Institutional fund outflows intensified selling pressure: Recently, cryptocurrency-related ETFs have seen a net outflow for several consecutive days. Institutions chose to reduce their holdings and exit the market when the market outlook was unclear. Without institutional funding support, the liquidity of the ETH market became increasingly fragile, making it difficult to withstand selling pressure, and the price fell accordingly. $ETH #ETH走势分析