Ethereum has fallen sharply, sliding to an important support level as bearish sentiment spreads across the crypto market. The token is now down 35% from its yearly peak, trading near $3,060, its lowest level since July 16.
The downturn follows a steady wave of selling pressure from U.S. investors, shrinking open interest, and consistent outflows from spot Ethereum ETFs.
ETF Outflows Intensify as Investors Exit Positions
Data from SoSoValue shows that spot Ethereum ETFs have been under persistent pressure:
- Six consecutive days of outflows
- Over $13 billion in cumulative inflows since launch
- Two straight weeks of net asset declines
ETF holdings have now dropped to around $20 billion, reflecting fading institutional demand during the broader crypto correction.
Open Interest Drops Over 50% Since October
Ethereum’s futures market shows a clear decline in speculative appetite.
Open interest has fallen more than 50% since October, signaling:
- Reduced leverage
- Weakening confidence
- Declining trading activity
The Crypto Fear & Greed Index has also eased, confirming the broader risk-off environment.
ETH Supply on Exchanges Continues to Plunge
Despite the negative price action, one metric offers a potential silver lining.
Exchange balances are dropping fast.
According to CoinGlass:
- ETH on exchanges: 11.96 million
- Down from July’s peak of 16.36 million
This 25% reduction in exchange supply suggests long-term holders are moving coins to self-custody, which historically reduces immediate selling pressure and supports long-term price stability.
Technical Analysis: Double-Bottom or Breakdown Ahead?
Ethereum’s daily chart paints a mixed picture.
Bearish Signals
- Strong downtrend since forming a double-top, a classic bearish reversal pattern
- Price has fallen below both the 50-day and 200-day EMA
- EMAs are close to forming a death cross
- ETH trades below the Supertrend indicator
- Price is currently sitting at the 50% Fibonacci retracement level
Bullish Glimmer
ETH has established a small double-bottom at $3,060, with the neckline at $3,600 (38.2% Fib level).
- ETH has also stabilized near strong Murrey Math support zones
- A sustained hold above $3,060 could trigger a relief bounce toward $3,600
However, a breakdown below $3,060 would open the door to further downside and invalidate the double-bottom recovery setup.
Outlook
Ethereum faces a complicated landscape:
- Short-term trend: Bearish
- Long-term signals: Gradual accumulation
- Key level to watch: $3,060 support
If bulls can defend the double-bottom, ETH could see a short-term rebound.
If not, deeper correction risks remain on the table.
