Ethereum’s price struggles to return to the $3,000 mark as exchange traded fund (ETF) outflows continue and derivatives activities weaken. This is a market environment that favors reducing risk.
You can read more about it here:
- Ethereum falls below $3000 amid declining volume and decreasing derivatives participation.
- BlackRock ETHA led daily outflows of $224M for the Spot ETFs.
- Technical structure bearish keeps the downside risk high unless resistance key breaks.
At the time of publication, Ethereum’s price was $2,919, a 0.5% drop over the last 24 hours. Second largest cryptocurrency, Ethereum has dropped 12% during the past seven days and is currently trading 41% lower than its high from August of $4,946.
At the same, there has been a noticeable cooling in trading activity. The daily volume dropped to $22.3 billion from prior sessions, a 27% drop. This suggests that fewer traders have entered the market as prices remain stuck below a critical resistance level.
Derivatives data shows traders cutting exposure. CoinGlass reports that traders are reducing their exposure. dataETH derivatives volumes fell by 31%, to $58.8 billion. Open interest decreased 2.2%, to $36.87 billion. This indicates that the positions are being wound down rather than a new level of leverage is being added.
The fourth consecutive day of ETH ETF withdrawals
Pressure on EthereumETHThere has been a continued flow of funds from U.S. spot ETFs. Data SoSoValue reports that on December 16, ETH ETFs saw net withdrawals totaling $224.26 millions, marking the fourth day in a row of withdrawals.
BlackRock ETHA saw the largest outflow, at $221 million, followed by Fidelity FETH with a $2.94-million withdrawal. Weekly outflows from ETH-ETFs are now at $449 million.
The same day investors withdrew $277 million in Bitcoin ETFs. The move increased the total outflows Over $500 Million in BTC and ETH was the largest withdrawal ever seen on a single day.
Market sentiment has remained bleak. macro In the face of uncertainty and weakness in general, institutions are taking a cautious approach and limiting their exposure. Recent trends indicate that the momentum for institutional crypto products has slowed.
Data indicates that Ethereum ETFs have experienced net outflows totaling $1.8 billion in Q4 of 2025, which is an inverse of their previous strong inflows.
Ethereum Price Technical Analysis
Ethereum’s price is in a downtrend with lower highs, and lower lows. Each bounce has been limited below previous swing highs.
On the chart for the day, ETH hugged the lower Bollinger Band. That usually means that the trend continues and not reverses. Bollinger Bands middle line (20-day simple moving) average has repeatedly been used as resistance to stop recent rebound efforts.
Bollinger Bands have a moderate width, indicating that volatility has not changed direction. It is therefore unlikely that a sharp move upwards will occur without an important new catalyst.
Momentum remains skewed to the sellers. Market is in bearish mode as 14-day RSI closes to 41. This is well below neutral mark of 50. The relative strength index has not shown any bullish signals or divergence with the price.
The MACD indicator, the momentum indicator, and a few moving averages all show bearish signals.
For Ethereum to show signs of a short-term recovery, it would need to break back above the $3,060–$3,100 range and stay there. It is possible that the price will continue to fall if it does not hold the $2,900 level. The next support point would be $2,800.
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
“ItsDailyCrypto is not responsible for any activities you perform outside ItsDailyCrypto.”
Source: crypto.news
