Ethereum News Today: Buterin Warns Institutional Dominance Threatens Ethereum's Decentralization

Ethereum (ETH) remains in a critical consolidation phase as it hovers near key support levels, with analysts closely monitoring a potential rebound amid heightened volatility. The cryptocurrency traded near $2,800 as of November 21, 2025, caught in a descending channel between $2,500 support and $3,000 resistance, according to technical analyses. This juncture has sparked debate over whether the asset is entering a bearish correction or positioning for a resurgence.

Recent data highlights a surge in ETF outflows, exacerbating downward pressure. Ethereum ETFs saw $1.5 billion in redemptions in November alone, the largest monthly withdrawal since their launch. BlackRock's Ethereum Trust (ETHA) contributed to this trend, with a $53.7 million outflow on November 20, while Fidelity's FBETH ETF attracted $95.4 million in inflows, breaking a nine-day outflow streak. These movements reflect shifting institutional sentiment, compounded by lingering effects from the October 10 liquidation event, which forced digital asset treasuries to offload ETH to reduce discounts to net asset value.

The price action has drawn warnings from Ethereum co-founder Vitalik Buterin, who cautioned that growing institutional dominance -led by BlackRock's ETF dominance- poses existential risks to the network's decentralization. He highlighted concerns that institutional influence could drive technical changes favoring high-frequency trading infrastructure, potentially marginalizing individual node operators. Meanwhile, BlackRock itself is advancing plans for a staked Ethereum Trust ETF, signaling continued institutional engagement despite market turbulence.

Technical indicators underscore the precarious balance. The $2,400–$2,500 range is deemed a pivotal support zone, with a breakdown potentially triggering a 30–40% decline toward $1,890–$2,150 according to analysts. Conversely, a sustained rebound above $3,000 could pave the way for a test of $3,700, according to Derive.xyz CEO Nick Forster. On-chain metrics add complexity: hodler selling surged 300% in late November, injecting $2.9 billion in selling pressure, while exchange outflows suggest whales are shifting funds to cold storage according to on-chain data.

Market probabilities further illustrate uncertainty. Event-contract data assigns a 70% chance of ETH falling to $2,750 by year-end, while a death cross - a bearish technical signal - looms as the 50-day EMA nears the 200-day EMA according to technical analysis. However, long-term fundamentals remain resilient. Ethereum's Dencun upgrade has boosted Layer-2 adoption, reducing transaction fees and increasing burn rates, while staking activity locks 25% of the circulating supply.

Analysts remain divided on near-term outcomes. Mister Crypto noted Ethereum's underperformance relative to Bitcoin, with the token trading 40% below its 2024 peak. Meanwhile, GameSquare CEO Justin Kenna emphasized confidence in Ethereum's utility, despite short-term volatility. The path forward hinges on institutional participation, regulatory clarity, and network upgrades, with the Ethereum Foundation's roadmap targeting scalability and rollup efficiency enhancements.