Ethereum posted the 4th worst Q4 return of -28.28% on record, what’s next?

Ethereum just finished its fourth worst fourth quarter in history. According to CoinGlass data shared by the Wu blockchain, Ethereum ended Q4 2025 with a loss of 28.28%, marking the fourth-worst Q4 performance in history.

Ethereum fell from September to December, resulting in a bearish end to 2025. The second-largest cryptocurrency ended December down 0.84%, marking the fourth straight month of declines.

Ethereum ended December with little sign of the year-end rally that traders often count on, ending the fourth quarter in the red amid thin liquidity and weakening risk appetite.

The cryptocurrency market’s “Santa Rally” never really arrived, as repeated attempts to regain key levels were sold off and Ethereum declined.

According to Glassnode, ETF flows will not see new demand at the end of 2025, and the 30-day SMA of net flows for Bitcoin and Ethereum ETFs will remain negative.

This is important because cryptocurrencies have historically relied on strong year-end flows to establish early-cycle momentum.

Ethereum ended 2025 at 11%, losing momentum after hitting a record near $5,000 in August of the same year.

What will happen in 2026?

Ethereum developers have agreed to date the second major upgrade of the ETH network to 2026.

Hegota will follow in the footsteps of Ethereum’s next major upgrade, Gramsterdam, which is currently scheduled to be rolled out in the first half of 2026.

According to Ethereum creator Vitalik Buterin, Ethereum accomplished a lot in 2025: gas limits increased, blob count increased, node software quality improved, and zkEVM reached various performance milestones.

Going forward, Ethereum will have to work harder to achieve the goals it has set, Buterin said, adding that its mission remains to build a world computer that will serve as the central infrastructure for a freer and more open internet.