Ethereum ETFs Face Significant Outflows: Is a $2,500 Drop Looming for Traders?

As the festive season approaches, many investors are wishing for a “Santa Claus Rally." However, the scenario for Ethereum ETFs has been quite the opposite this December.

Key Takeaways

Ethereum ETFs have experienced $853.9 million in outflows since December 11th.
Despite minor price increases, the pressure from ETF outflows has left traders uneasy.
Bitcoin ETFs have faced even greater outflows of $1.538 billion in the same timeframe.
Technical indicators suggest bearish momentum is still strong, but a potential trend reversal could be imminent.
Ripple (XRP) stands out in the ETF space with consistent daily inflows, reflecting strong institutional confidence.

Ethereum ETFs are emptying fast! Is a drop to $2,500 closer than traders think?

Since December 11th, Ethereum ETFs have been experiencing a consistent outflow, totaling $853.9 million lost over two weeks, according to Farside Investors. A brief recovery on December 22nd brought in $84.6 million in inflows, but the broader trend raises concerns amongst traders. Currently, Ethereum is trading around $2,964, with potential support at $2,500. Meanwhile, Bitcoin ETFs have fared even worse, with $1.538 billion in outflows during the same period. Both cryptocurrencies face bearish momentum, although there are signs that a trend reversal could be on the horizon.

The Situation with Ethereum Pricing

While Ethereum [ETH] and Bitcoin [BTC] saw slight increases in their prices over the last day, it appears that institutions are either de-risking their holdings or securing tax losses as the year wraps up. At the time of this report, Ethereum was trading at about $2,964, but significant ETF outflows seem to be causing anxiety among traders. The crucial price point to monitor is $2,500; if outflows persist at this rate, this key support level might be challenged. Interestingly, despite these outflows, ETH has managed to maintain around the $2,900 mark, indicating that retail investors or large on-chain buyers may be absorbing the selling pressure from ETFs.

Bitcoin’s Performance: A Different Story?

In contrast, Bitcoin ETFs have encountered even tougher challenges, exhibiting outflows significantly higher than Ethereum's. Since December 11th, Bitcoin ETFs recorded outflows of $1.538 billion, indicating a marked withdrawal from institutional investors. Only two days broke this downward trend: December 12th saw modest inflows of $49.1 million, and December 17th recorded inflows exceeding $457.3 million. However, these short-lived gains paint a picture of a broader trend of institutional withdrawal. Consequently, Bitcoin has fallen to $88,514.79 at the time of writing.

Analyzing Technical Indicators

Although both ETH and BTC have experienced minor price gains recently, the Relative Strength Index (RSI) for each remains below 50, suggesting strong bearish momentum in the short term. However, both indicators are starting to move upwards, hinting at a possible bullish divergence, which might signal an upcoming trend reversal.

Santiment data of ETH and BTC
Source: Santiment

Looking Ahead to 2026

As we move towards 2026, Bitcoin and Ethereum seem to be charting their own distinct paths. In contrast, Ripple [XRP] has shown remarkable consistency in the ETF landscape, reporting daily inflows that have pushed its net assets above $1.16 billion. This ongoing demand illustrates robust institutional confidence in XRP’s regulatory outlook and long-term potential, a level of assurance that currently seems out of reach for both ETH and BTC.

Concluding Thoughts

As the Ethereum market grapples with these significant outflows and uncertainty, investors must remain vigilant and adaptive in a landscape that is continuously evolving. With potential support levels and bearish momentum in mind, traders should prepare for varying scenarios as 2026 approaches.