Ethereum Faces Bearish Pressure as Dormant Wallets Awaken and ETF Outflows Mount

Ethereum is experiencing significant bearish pressure as long-term holders begin to move coins from dormant wallets, signaling potential sell-offs. The cryptocurrency has declined by 4% to $2,442.32, trading between $2,389.71 and $2,556.98 amid weak demand. Glassnode's liveliness metric has reached a record high of 0.69, indicating accelerated coin movement by HODLers. Chain activity further underscores the grim outlook, with Ethereum's Total Value Locked (TVL) dropping from 27.99M ETH on May 6 to 25M ETH. This development raises concerns about the short-term trajectory of Ethereum, as increased selling pressure and reduced demand could lead to further price declines. Investors are closely monitoring these trends to gauge whether this is a temporary setback or the beginning of a more prolonged downturn for the second-largest cryptocurrency by market capitalization.

ETH Sell-Off Intensifies as Dormant Wallets Awaken and ETF Outflows Mount

Ethereum faces mounting bearish pressure as long-term holders awaken dormant wallets, signaling potential sell-offs. The cryptocurrency slid 4% to $2,442.32, oscillating between $2,389.71 and $2,556.98 amid weak demand. Glassnode's liveliness metric hit 0.69—a record high suggesting accelerated coin movement by HODLers.

Chain activity paints a grim picture: Ethereum's TVL plummeted from 27.99M ETH on May 6 to 25M ETH, reflecting eroding DeFi engagement. Exchange inflows spike as $170M in positions liquidate, including $157M longs—a clear warning of overheated leverage unwinding.

Spot ETH ETFs bled $11.3M on June 20, with Grayscale's ETHE hemorrhaging $19.7M. While minor inflows to other funds provided scant relief, the overall trend suggests institutional hesitation. Technicals warn of potential declines toward $2,185 unless buying interest resurges.

Spot ETH ETFs See Largest Single-Day Outflows in June Amid Market Volatility

Ether (ETH) staged a modest recovery over the weekend after a turbulent week marked by significant institutional withdrawals. U.S.-listed spot ETH ETFs recorded $11.3 million in net outflows on June 20—the highest single-day exodus this month. BlackRock's ETHA ETF led the retreat with a $19.7 million withdrawal, its first negative FLOW in June.

Grayscale's ETHE product bucked the trend, attracting $6.6 million, while VanEck's ETHV ETF added $1.8 million. The divergence suggests institutional players are reassessing ETH exposure despite selective fund inflows.

Price action mirrored the capital movements. ETH briefly plunged to $2,372.85 during a high-volume sell-off before finding strong support between $2,420-$2,430. The rebound formed an ascending trendline, with trading volume spiking 18.97% above the seven-day average—a sign of accumulating interest at lower levels.

ETH Breakout Patterns Align With Kaanch Buying Frenzy—Top Altcoins Can’t Keep Up

Ethereum's technical charts signal potential shifts as the cryptocurrency market buzzes with activity. The Kaanch Network emerges as a disruptive force, drawing investor interest through its rapid presale and innovative infrastructure. Ethereum struggles to maintain critical support levels, while Kaanch positions itself as a high-growth alternative for 2025.

Ethereum currently trades at $2,428.75, reflecting a 4.76% weekly decline. Technical analysis reveals five negative Points of Control above current prices, creating a discounted buy zone amid tepid market sentiment. Network congestion and gas fees continue to plague Ethereum's scalability, driving capital toward solutions like Kaanch Network.

Kaanch Network addresses Ethereum's pain points with near-zero gas fees and unmatched scalability. Its instant trade execution capability presents a compelling value proposition as investors seek alternatives to established layer-1 networks. The project's upcoming exchange listings further bolster its investment thesis.

Ether Weathers Institutional Outflows with Technical Resilience

Ether endured a volatile week as institutional investors pulled $11.3 million from US-listed spot ETH ETFs on June 20—the largest daily outflow this month. BlackRock's ETHA fund led the retreat with a $19.7 million withdrawal, while Grayscale's ETHE bucked the trend with $6.6 million in inflows.

Despite the capital flight, ETH found firm footing above $2,420 after briefly testing $2,372. The rebound highlights a divergence between short-term fund flows and underlying technical strength. Market participants now watch whether this support holds as ETF issuers like VanEck see modest inflows.