Ethereum Price Struggles Below $3,000 Amid Rising ETF Outflows

Ethereum's price is having difficulty surpassing the $3,000 mark due to ongoing exchange-traded fund (ETF) outflows and reduced trading activity. The second-largest cryptocurrency has seen a significant drop in value and trading volume, creating a cautious market atmosphere among traders.

Key Takeaways

Ethereum is trading at $2,919, which is a 12% decrease over the past week and 41% lower than its August all-time high.
Daily trading volume has fallen to $22.3 billion, a 27% decline.
Recent data shows that ETH ETFs have experienced net outflows of $224.26 million for four consecutive days.
The current market sentiment is weighed down by macroeconomic concerns, leading institutions to reduce exposure to cryptocurrencies.

Chart showing Ethereum price consolidating

Ethereum's Price Action

At the time of writing, Ethereum is trading at $2,919, reflecting a 0.5% decrease in the last 24 hours. Over the past week, the cryptocurrency has plunged by 12%, placing it approximately 41% below its all-time high of $4,946 reached in August. Additionally, the trading landscape has noticeably cooled, with daily trading volume dropping to $22.3 billion, indicating a 27% decline from the previous day; this suggests that fewer traders are engaging in the market as prices remain hesitant below a crucial resistance level.

Derivatives data points out that traders are reducing their exposure. According to CoinGlass, ETH derivatives volume has decreased by 31% to $58 billion, while open interest has come down by 2.2% to $36.87 billion. These trends indicate that current positions are being unwound as opposed to establishing new leverage, a pattern often seen during market downturns.

Continued Outflows from ETH ETFs

The pressure on Ethereum's price has intensified due to ongoing outflows from U.S. spot ETH ETFs. Recent data from SoSoValue reveals that these ETFs registered net outflows amounting to $224.26 million on December 16, marking the fourth consecutive day of withdrawals. The leading cause of this withdrawal is attributed to BlackRock's ETHA fund, which saw $221 million exit, while Fidelity’s FETH experienced a smaller outflow of $2.94 million. Over the week, total outflows from ETH ETFs have reached $449 million.

In conjunction, $277 million was withdrawn from Bitcoin ETFs on the same day, pushing total outflows across Bitcoin and Ethereum funds to exceed $500 million, marking the most significant single-day withdrawals in nearly two weeks. The current market sentiment remains pessimistic due to macroeconomic uncertainties, and institutional players are showing increased caution by reducing their exposure to cryptocurrencies. Although 2025 has been a strong year for crypto-focused institutional products, recent trends indicate that this growth may be decelerating.

Data indicates that Ethereum ETFs alone have witnessed about $1.8 billion in net outflows during Q4 2025, reversing a lot of the positive inflow momentum seen previously.

Technical Analysis of Ethereum's Price

Ethereum continues to operate within a clear medium-term downtrend, marked by lower highs and lower lows in its price movements. Each rebound attempt thus far has stalled below prior swing highs. On the daily chart, Ethereum has been closely tracking the lower Bollinger Band, a pattern that often suggests a continuation of the current trend rather than a reversal. The 20-day simple moving average, which serves as the middle line of the Bollinger Bands, has consistently acted as a resistance level, halting recent recovery efforts.

Ethereum price stalls below $3K as spot ETH ETFs see 4th straight day of net outflows - 1

The Bollinger Bands are moderately wide, which indicates that volatility remains focused in a single direction. This scenario makes a sharp upward movement without a strong catalyst unlikely. Additionally, momentum appears to favor sellers, with the 14-day Relative Strength Index (RSI) hovering near 41, below the neutral mark of 50. There are no clear bullish signals or divergences between the RSI and recent price lows that indicate a potential reversal.

Other technical indicators, including the MACD, momentum indicators, and various moving averages, also exhibit bearish signals. For Ethereum to display signs of a short-term recovery, it would need to break above the $3,060 to $3,100 range and maintain that level. Should it fail to hold above $2,900, the focus may shift downward, with $2,800 emerging as the next logical support level.