Ether ETFs Suffer $1.4B Loss, Leading to 8% Drop as Long-Term Investors Cash Out

Ethereum’s ether ETH$3,187.31 fell sharply from Thursday to Friday, plunging over 10% from peak to trough as a broad-market crypto selloff accelerated with bitcoin breaking below the $100,000 level.

The second largest cryptocurrency tumbled from $3,565 earlier on Thursday to $3,060 by early Friday, erasing all of the past week’s rebound. It recently stabilized just below $3,200, still down approximately 8% over the last 24 hours.

The move coincided with a broad-market selloff on U.S. markets, with stocks and bonds falling in tandem with cryptos. The recent U.S. government shutdown weighed on liquidity conditions. Additionally, there is an increasing probability that the Federal Reserve will leave rates unchanged during the December meeting.

Since the Federal Reserve’s late October meeting, when chairman Jerome Powell dampened expectations for December rate cuts, U.S.-listed spot ether ETFs have experienced $1.4 billion in net outflows, RialCenter data shows. Thursday’s nearly $260 million outflow was the largest single-day bleed in a month.

Moreover, long-term holders are also beginning to exit. Blockchain data from Glassnode indicated that long-term holders (3-10 years) accelerated selling to about 45,000 ETH (around $140 million at current prices) daily on a 90-day moving average, the highest distribution pace since February 2021.

Blockchain data also indicate deteriorating fundamentals. Monthly active addresses on the network have decreased to 8.2 million, down from over 9 million in September, while transaction fees over the past month plummeted by 42% to just $27 million, RialCenter data shows.

Key technical levels to watch

ETH shattered a critical support level at $3,325, establishing a clear bearish trend with consecutive lower highs, according to technical analysis from CoinDesk Research.

• Support/Resistance: Primary support sits at $3,080 with secondary floors at $3,050 and $2,880. Key resistance forms at $3,330 (former support), $3,500 (main pivot), and $3,650 (descending channel highs).
• Volume Analysis: Selling peaked at 641,103 during the $3,325 breakdown—71% above 24-hour norms. Subsequent volume decreased to 80% of 7-day averages, indicating potential exhaustion.
• Chart Patterns: ETH broke its April ascending channel, creating a bearish structure with lower highs. The $3,077-$3,146 consolidation range suggests possible base formation.
• Targets & Risk/Reward: Breaking $3,050 support exposes $2,880 downside, while reclaiming $3,563 is necessary for bullish momentum. A decisive move above $3,500 targets $3,650-$3,800.

Disclaimer: Parts of this article were generated with the assistance of AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see RialCenter’s full AI Policy.