Ethereum Crashes Below $3,100: ETF Outflows Trigger Long-Term Holder Exodus
Ethereum's price plunges through a critical support level as institutional products bleed assets and OGs head for the exits.
The great unwind begins: Nearly half a billion in leveraged longs got liquidated during the descent—proof that even 'smart money' overplays its hand.
Contagion watch: With ETH's drop dragging down the altcoin market, traders are left wondering which domino falls next. Meanwhile, Bitcoin maximalists smugly adjust their 'I told you so' memes.
Silver lining? Every crypto winter eventually thaws. But for now, the only thing mooning is the margin call rate.
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The retreat followed a broad slump across U.S. risk assets after traders walked back expectations for December rate cuts. Bitcoin fell below $100,000 and dragged the rest of the market into deeper losses.
ETF Outflows Add Pressure
ETF flows continued to lean sharply negative. U.S. spot ether ETFs have shed more than $1.4 billion since late October. Thursday delivered nearly $260 million in outflows, which marked the biggest single-day number in a month.
Investors appear to be tightening their exposure after the Federal Reserve signaled it may keep rates steady through year-end. Liquidity across markets remained strained after the government shutdown ended and bond markets weakened.
Long-Term Ether Holders Increase Selling
Long-term holders accelerated distribution at a pace not seen since 2021. Glassnode reported that wallets holding ETH for three to ten years sold about 45,000 ETH per day on a 90-day moving average. That represents roughly $140 million daily at current prices.
Monthly active addresses slipped to 8.2 million from more than 9 million in September. Network fees declined as well, falling 42% to $27 million over the past month. The data shows weakening usage during a period when prices typically need strong fundamentals to sustain momentum.
Key Levels Break as Trend Turns Bearish
ETH lost a critical support zone at $3,325 and confirmed a string of lower highs. Technical signals now point to a bearish structure.
Support sits NEAR $3,080 and then $3,050. A deeper slide exposes the $2,880 area. Resistance begins at $3,330, then $3,500, followed by $3,650 at the top of the descending channel.
Volume spiked during Thursday’s breakdown, reaching 641,103 ETH traded. That was 71% above the 24-hour average. Activity faded afterward, suggesting early exhaustion but no firm reversal.
Short-term consolidation has formed between $3,077 and $3,146. Bulls need to reclaim $3,563 to regain upward momentum. A sustained move above $3,500 WOULD add confidence and open the door to $3,650 and $3,800.
At the time of writing, Ether is sitting at $3,186.54.
