TLDR
- Ethereum ETFs lost $428.52M in a single day, the largest outflow since August.
- BlackRock’s ETHA led redemptions with $310.13M withdrawn on Monday.
- ETH trades near $3,986, below the Super Trend resistance at $4,561.
- Analysts see $3,626 as the next key support if selling pressure continues.
Ethereum is under growing pressure as institutional investors scale back their exposure to the asset. The second-largest cryptocurrency by market capitalization faces mounting selling activity, with market sentiment weakening after a recent downturn. As large funds cut their holdings, Ethereum’s price remains vulnerable around the $4,000 level, testing traders’ confidence amid shifting capital flows and renewed market caution.
Institutional Outflows Signal Weakening Confidence
Ethereum-backed exchange-traded funds (ETFs) have seen sharp withdrawals since last Friday’s broad market sell-off. Data from SosoValue shows that Ethereum ETFs recorded $428.52 million in outflows on Monday alone, marking the largest daily capital exit since early August.
BlackRock’s iShares Ethereum Trust (ETHA) recorded the most redemptions, totaling $310.13 million. Grayscale’s Ethereum Trust (ETHE) followed with $20.99 million in withdrawals, while Fidelity’s Ethereum Fund (FETH) saw $19.12 million in outflows. Bitwise’s Ethereum ETF (ETHW) and VanEck’s Ethereum ETF (ETHV) also posted smaller losses of $12.18 million and $9.34 million, respectively.
According to market observers, these movements suggest reduced institutional participation following recent volatility. The ongoing withdrawals may add to downward market pressure, limiting Ethereum’s potential to stabilize in the short term.
Market Consolidation Persists After Crash
Following the liquidation event that triggered the recent market decline, Ethereum’s spot market has entered a consolidation phase. Retail traders have also reduced exposure, echoing the behavior of institutional investors. The lack of strong buying activity has kept the coin trading near the $4,000 level, with limited signs of immediate recovery.
Analysts note that market sentiment remains fragile, as participants await clearer signals of renewed demand. Any further weakness in institutional inflows could sustain the cautious tone, with traders closely monitoring capital movement into ETFs and on-chain activity.
Technical Indicators Point to Bearish Conditions
Readings from Ethereum’s daily chart show the asset trading below its Super Trend indicator. This trend line now acts as resistance at around $4,561. With ETH currently priced near $3,986, the market is positioned below this threshold, signaling ongoing bearish control.
The Super Trend indicator helps traders assess price direction by placing a dynamic line relative to volatility. When the price stays below the line, it often reflects dominant selling pressure. Market participants view this setup as a sign that Ethereum could struggle to regain upward momentum in the near term.
Price Levels to Watch as Bears Maintain Pressure
If sellers maintain control, Ethereum may test lower price levels in the coming days. Analysts point to $3,626 as the next area of support, followed by a possible move toward $3,215 if pressure intensifies.
However, a rebound in investor demand could change the outlook. Renewed buying from both institutional and retail participants might help the coin recover to around $4,211, a level seen as a short-term resistance zone. For now, Ethereum remains in retreat mode, with traders watching for signs of stabilization after the largest ETF redemptions in months.
