Ethereum came under renewed selling pressure this week, slipping below the critical $3,000 level and briefly touching a five-week low as a mix of geopolitical uncertainty and weakening institutional demand rattled investor confidence.
The world’s second-largest cryptocurrency fell to an intraday low of $2,872 during Asian trading hours on Thursday, marking its first dip below $2,900 in over a month. The decline followed the loss of the psychologically important $3,000 support earlier in the week.
Market sentiment turned sharply risk-averse after U.S. President Donald Trump threatened to impose tariffs on several NATO allies amid escalating political tensions. The comments pushed investors toward traditional safe-haven assets such as gold and silver, weighing on cryptocurrencies across the board.
Adding to the pressure, institutional demand for Ethereum has weakened noticeably. Data from SoSoValue shows that more than $500 million was withdrawn from U.S. spot Ethereum ETFs over the past two days, marking the largest outflow streak since mid-December. Historically, sustained ETF outflows have often preceded deeper pullbacks in ETH price, including an 8% weekly drop seen in December last year.
From a technical perspective, Ethereum has now confirmed a bearish pennant pattern on the daily chart. This pattern typically forms after a sharp decline, followed by a brief period of consolidation before another potential leg lower. ETH broke below the lower trendline of the pennant, a move that many traders interpret as a signal to expect further downside.
Ethereum has also slipped below its 50-day simple moving average near $3,084, a level that had acted as dynamic resistance in recent weeks. Meanwhile, the MACD indicator has printed a bearish crossover, reinforcing the negative momentum outlook.
Taken together, these signals suggest Ethereum could fall as much as 17% toward the $2,500 level, which represents the next major psychological support zone and previously served as a price floor during periods of heightened volatility in mid-2025.
That said, Ethereum showed signs of short-term stabilization after recovering back above $3,000. The bounce followed reports that President Trump would not proceed with the proposed tariffs after what he described as a “very productive meeting” with NATO Secretary General Mark Rutte in Davos.
If macro tensions continue to ease and ETH manages to hold above $3,000, the bearish outlook could weaken. A sustained move above $3,084 would invalidate the current bearish setup and potentially open the door to a broader recovery.
