Ethereum Price Faces Bearish Pressure as ETF Outflows Continue

Ethereum’s price has declined nearly 18% in the past week, largely due to six consecutive days of outflows from U.S. Ether ETFs. This trend is impacting investor sentiment negatively, with technical indicators suggesting further losses may be in store.

Key Takeaways

Ethereum’s price has dropped about 18% over the last week.
U.S. spot Ether ETFs saw significant outflows totaling $630 million over six days.
Macroeconomic factors, including interest rate changes, are discouraging investment in cryptocurrencies.
Technical patterns indicate a potential bearish reversal for Ethereum.
Key support level to watch: $2,629.

Ethereum Price Faces Bearish Pressure as ETF Outflows Continue

Ethereum Price and Market Dynamics

The price of Ethereum has experienced a significant drop, falling nearly 18% within the past week. Recent data indicates that U.S. Ether ETFs recorded six consecutive days of outflows, which appear to be negatively influencing investor sentiment. A bearish reversal pattern has emerged on the daily chart, signaling the possibility of further price declines.

Ethereum's price reached an intraday low of $2,781 on December 19, down from last week’s peak of $3,390 and marking a 39% decrease from its yearly high. This downturn coincides with reduced demand for Ethereum's spot ETFs among institutional investors.

Recent figures from SoSoValue reveal that U.S. spot Ether ETFs experienced a total net outflow of $630 million across six days. Such continuous outflows from these financial products tend to diminish investor appetite, subsequently increasing the selling pressure on Ethereum.

Economic Influences on Cryptocurrency Investment

Several broader macroeconomic factors are also contributing to the hesitancy of investors in the crypto market. The Federal Reserve's recently hawkish stance regarding potential interest rate cuts in early 2026, alongside the Bank of Japan's decision to raise interest rates by 0.25%—its highest increase in 30 years—has made investors more cautious about crypto assets, including Ethereum.

Additionally, there is pressure on Ethereum due to the liquidation of heavily leveraged traders in its derivatives market. Data from CoinGlass indicates that approximately $158 million in positions were liquidated in the past 24 hours, further adding downward pressure on its price.

Technical Analysis: Bearish Patterns Emerge

Over the last month, Ethereum has developed an ascending broadening wedge pattern characterized by higher highs and higher lows. However, bears are now beginning to reassert their control. Breaking down from this formation usually signals a bearish trend reversal is imminent in the coming days.

Multiple Bearish Patterns on Daily Chart

At the time of writing, Ethereum is hovering near a breakdown point beneath the lower trendline of this wedge. If this trendline fails to hold, it could lead to a price drop below $2,629, which serves as the neckline of an inverse cup and handle pattern—an extensive bearish structure that has formed over several months, suggesting that the downtrend may persist.

Technical indicators reinforce this bearish outlook. For example, the MACD lines are trending downward, indicating that the downward momentum is still strong. Additionally, the Aroon Down indicator has surged to 92.86%, while the Aroon Up sits at a mere 35.71%, confirming that bearish momentum continues to steer market direction.

Currently, the critical level to monitor is $2,629. A failure to stay above this level could result in a drop to $2,400, which has historically acted as robust support for Ethereum throughout the year. Losing this level could lead to further declines in the price.