BlackRock crypto moves are dominating Ethereum ETF trends. Here’s the latest Ethereum sell-off and why the price is locked in a tight range.
Ethereum continues to struggle below the $3,000 level as selling pressure from the ETFs and softer trading activity keep price gains limited. Ethereum institutional selling pressure from the ETFs and softer trading activity keep price gains limited.
Market data shows that fewer traders are willing to take new positions, and this mix leaves Ethereum moving sideways while risks continue to loom.
Analysis: ETH Below $3000 as Selling Pressure Builds
Ethereum traded near $2,920 as of writing. The price dropped about 12% over the past week and continues to trend far below the August peak near $4,946.
Trading volume has also declined as daily volume fell to about $22.3 billion. That figure marked a 27% drop from the previous session and the lower volume indicates that fewer traders feel confident enough to step in.
This story also holds in the derivatives markets, where CoinGlass data shows that ETH derivatives volume dropped 31% to $58 billion. Open interest slid 2.2% to $36.87 billion and traders appear to be reducing their exposure rather than adding leverage.
Ethereum ETFs Record Fourth Day of Net Outflows
Negative spot Ethereum ETF flows added more pressure to this. Data from SoSoValue shows net outflows of $224.26 million on December 16, which marked the fourth straight day of withdrawals.
The ETHA BlackRock fund (iShares Ethereum Trust) led the move as investors pulled about $221 million. On the other hand, Fidelity FETH (Wise Origin Ethereum Fund) saw a smaller $2.94 million outflow.
Weekly totals have now reached roughly $449 million in net withdrawals. Notably, outflows also hit Bitcoin ETFs on the same day as combined withdrawals topped $500 million.
That stood as the largest single-day exit in nearly two weeks. While BlackRock led the decline, the Grayscale ETHE outflow volume remained flat at zero for the day.
Ethereum Technical Structure Remains Weak
Meanwhile, charts continue to show clear downtrend. Ethereum is now posting lower highs and lower lows on the daily timeframe, where each rebound attempt fades below prior peaks.
The asset’s price currently trades near the lower Bollinger Band and that behaviour often indicates trend continuation, rather than reversal. Thus, the 20-day SMA acts as resistance during recent bounces.
Bollinger Bands are still moderately wide but volatility seems tilted in one direction. With this in mind, a strong upside move seems unlikely without fresh demand.
The relative strength index sits near 41, which is below the neutral 50 mark. Other indicators seem aligned with this view, as the MACD readings favour sellers.
With all of this in mind, a short-term recovery would need a break above the $3,060 to $3,100 zone. Price must hold above that range to change investor sentiment.
In terms of a short-term Ethereum price prediction, a failure to defend $2,900 could bring lower levels into focus
Related Reading: ETH Reclaims Key Support As Silent Buying Intensifies
Support Zone Near $2,900 Holds for Now
Despite weakness, ETH has not collapsed. The price is now consolidating between $2,880 and $2,980 on lower timeframes and this range has absorbed multiple sell attempts over the past two weeks.
This zone seems to be in line with the lower boundary of a descending channel and buyers step in each time the price nears this area.
The short term charts show balance rather than trend as the price now moves sideways after the earlier breakdown.
This behaviour indicates exhaustion among sellers rather than fresh demand.
To sum things up, a daily close below $2,880 would weaken investor sentiment further, and that move could expose $2,750.
Further selling might reach $2,500 if pressure builds again.