Ethereum Drops 16% in Week, Institutional Outflows Surge 120%

Ethereum, the world's largest altcoin, has experienced a significant price drop, falling below $2,000 and opening the door for a potential 75% decline to $1,250. Over the past week, Ethereum has lost more than 16% of its value, extending its year-to-date losses to over 37%. This downward trend suggests a strong bearish sentiment surrounding the cryptocurrency. Additionally, outflows from Ethereum ETFs have surged, indicating a waning institutional interest in the asset.

Crypto analyst Ali Martinez highlighted that Ethereum is breaking down from a parallel channel, a technical pattern that suggests further bearish price action ahead. If Ethereum fails to hold its current support levels, it could plummet by another 75%, reaching as low as $1,250. This bearish grip has erased all of Ethereum's gains following the US Presidential election in November 2024, and the broader crypto market correction has exacerbated the situation, with market liquidations soaring.

The Ethereum market faced significant turbulence, with over $230 million in long positions liquidated. This wave of liquidations has shaken out overleveraged traders, highlighting the current market volatility surrounding the altcoin. Furthermore, the institutional interest in Ethereum has been falling rapidly. During the last week, the total outflows from spot Ethereum ETFs surged over $120 million. Despite this fall, crypto market analysts continue to stay bullish for ETH, expecting it to kickstart its recovery journey again.

Despite the bearish onslaught over the past few weeks, market analysts remain optimistic about an Ethereum price recovery in the coming days. Crypto analyst Ali Martinez reports that Ethereum’s largest whales have purchased 330,000 ETH in the past 48 hours, signaling strong accumulation by major holders. Additionally, over 600,000 ETH have been withdrawn from crypto exchanges in the last week, pointing to a potential shift toward long-term holding. These trends highlight growing confidence among large investors and reduced selling pressure on exchanges.

For Ethereum momentum to shift on the upside, the bulls must reclaim the $2,460 resistance level. A massive 10.95 million investors hold ETH at these levels, and thus, investors need to break past this to