Ethereum News Today: Ethereum ETFs See $224M in Outflows as Sellers Weigh on Price Near Key Support

Ethereum faces intensifying selling pressure as its price continues to hover near critical support levels. On-chain activity has plunged to seven-month lows, with active addresses on the network dropping to levels last seen in May. This has raised concerns about declining user participation and weakened demand.

The recent Ethereum spot ETFs have seen their third consecutive day of net outflows, totaling $224.78 million as of December 15. BlackRock's ETHA led the outflows with $139.09 million, while Grayscale's ETHE and Fidelity's FETH also experienced significant withdrawals. These movements underscore a broader trend of redemptions in the crypto ETF space.

Market sentiment remains bearish, with Ethereum ETFs continuing to experience outflows. Ethereum's price has struggled to break above $3,000, and the coin trades near $2,960 at the time of writing. The selling pressure has been driven by both institutional and individual investors, reflecting a cautious approach amid macroeconomic uncertainty and a tightening financial environment.

Why the Standoff Happened

The outflows in Ethereum ETFs are part of a broader risk-off sentiment in the crypto market. Institutional investors have been trimming their exposure to both Bitcoin and Ethereum spot ETFs, with combined outflows reaching $582.4 million in a single day. According to market analysis, this trend is attributed to macroeconomic de-risking rather than crypto-specific stress, as investors adjust positions in response to volatility in U.S. equities and global monetary policy uncertainty.

The pullback coincides with renewed uncertainty following the U.S. Federal Reserve's December rate cut decision, which, while easing, came with a hawkish tone. As reported by financial sources, the Fed's cautious stance has left investors in limbo, with expectations of only one rate cut in 2026. This has led to tighter financial conditions and increased pressure on U.S. risk assets, including crypto markets.

On-chain data further supports the bearish trend.

Ethereum's active addresses have dropped to 327,000, the lowest since May 2025. This indicates a significant decline in network participation, as fewer users are interacting with the Ethereum blockchain. A sustained drop in network activity often signals a loss of confidence and reduced speculative interest.

Whale activity has also intensified the downward pressure on ETH. Large holders have been aggressively offloading their positions, with over 28,500 ETH sold in a short period. According to detailed reports, this has included significant transactions from notable figures like Konstantin Lomashuk, who sold $42.7 million worth of ETH in just one hour.

How Markets Reacted

Ethereum's price action has been bearish, with the coin struggling to break above key resistance levels. It is currently trading near $2,957, consolidating after a sharp sell-off. Despite the large volume of distribution, the price has not broken down immediately, suggesting that the market is absorbing the supply but remains vulnerable to further declines.

Technical indicators reinforce the bearish outlook. The Relative Strength Index (RSI) for Ethereum has dipped below its neutral level, while the Stochastic Oscillator has entered the oversold region. These signals suggest weakening momentum and the potential for a short-term reversal if Ethereum can stabilize near $2,882.

According to price analysis, the liquidation heatmaps show significant liquidity clustered above $3,000, which could act as a price magnet if selling pressure subsides. However, a sustained breakdown below the 61% Fibonacci level could expose the $2,607 support zone, where prior demand was observed.

Ethereum's price is also being influenced by the broader macroeconomic environment. With Bitcoin acting as a Nasdaq derivative in the fourth quarter, any corrections in the tech sector have had a corresponding impact on crypto markets. This has pushed ETF redemptions to align with equity de-risking rather than crypto-specific factors.

What Analysts Are Watching

Analysts are closely monitoring several key factors to assess Ethereum's near-term outlook. One of the most important is the behavior of long-term holders, who have been cashing out at an alarming rate. According to data, over the past 30 days, long-term holders have sold 847,222 ETH, the largest monthly decrease since January 2021. This exodus represents a loss of foundational support for the price and signals reduced confidence in the immediate future.

Another critical area of focus is the futures market. The futures premium for Ethereum has fallen below 5%, indicating minimal expectations for a near-term price increase. This metric is a reliable gauge of trader sentiment and has historically reflected broader market trends. A low premium suggests that traders are reluctant to use leveraged bets, which often fuel bullish rallies.

Network fees and transaction activity are also being watched closely. With Ethereum's network fees declining by 45% over the past 30 days, the drop in usage highlights reduced fundamental demand for the asset. A quiet network can undermine one of Ethereum's core value propositions, especially if the decline in activity continues.

Looking ahead, analysts suggest that a sustained reversal in Ethereum's price would require a combination of factors, including a rise in futures premiums, a slowdown in holder selling, and an increase in network fees and active addresses. Until these metrics show signs of improvement, Ethereum remains exposed to volatility-driven movements in either direction.