Ethereum falls below $3K due to ETH ETF outflows in three consecutive days

Ethereum lost its $3,000 key psychological support after U.S. Ethereum exchange-traded funds (ETFs) recorded their third day in a row of net outflows. This was due to a shift towards a less risky market.

The following is a list of data SoSoValue reports that on December 15, the nine Ethereum ETFs with the most spots recorded a net outflow of $224.7 Million, which is the biggest single-day withdrawal since November 21, 2011. BlackRock IBIT was the largest fund to see outflows, with $139 millions. Grayscale ETHE and ETH, managed by investment manager Grayscale, followed closely with $35 and $20 million respectively. No ETH ETFs experienced any inflows that day.

The Monday outflows were the third consecutive day of outflows. consecutive day of net outflows These investment products lost nearly $286.5 millions. Nine ETFs, in particular, have had a negative performance so far this December. This is in line with the loss of $1.42 Billion in November.

Ethereum is a cryptocurrency that has been gaining traction in recent years.ETH( price) fell under $3,000, to a low of $2,895, before finally settling at $2.929, slightly above the previous day’s press time. The decline in this 24 hour period was over 6.3%. Over the last few weeks, the $3K psychological support level has been a key area of stability. Analysts have noted this level as an important level to hold in order to prevent further price decline.

It is likely that large derivative traders who are highly leveraged, also known as whales, were caught unawares by the drop of Ethereum to below $3,000. This triggered a cascade, otherwise called a liquidation.

In context, liquidations happen when margins are not sufficient to cover long positions. In this way, a sudden price decline can trigger a liquidation, further lowering prices.

Data CoinGlass data shows that nearly 207 million dollars worth of Ethereum futures positions have been liquidated, totaling $658.8 millions from the crypto market. 

Investors likely pulled their positions out of the market in anticipation of today’s U.S. employment data, which may influence the Fed’s rate cut decision The next 12 months will be a challenging one for investors. Investors already have a cautious attitude after the Fed’s hint at only one interest rate cut for 2026, in its third rate-cutting this year. Interest rates were reduced by 0.25 %.

Ethereum is one of the most popular cryptocurrencies. It tends to increase when more Fed rate cut are expected and to drop when this outlook becomes unclear.

Ethereum’s price formed a bearish giant flag on the daily chart. A large, sharp drop in the price is followed by a high-volume price decline. “pole,” Then, there is a short period of consolidating or a slight upswing on fewer volumes. “flag.” This flag pattern often signals further price declines over the next few months as the price breaks through the flag’s bottom boundary.

In late November, the top altcoin also confirmed the death cross. This occurs when the moving average of 50 days crosses below that of 200 days. These two indicators, when combined, increase the likelihood that Ethereum will continue to fall, at least up until there is a market turnaround.

Now, there is a possibility that ETH will drop beneath the lower border of the flag, towards $2,620, its low in November, a point bulls were able to successfully defend before and start a recovery.

The $3,170 level is a key resistance for traders, as it coincides with the Fibonacci 23.6% retracement. If this is broken, it could signal the end of the current downward trend and shift the market momentum to the bulls.