Ethereum News Today: Ethereum ETFs Gain Cash as Price Tests Critical $2,100 Support Level

Ethereum ETFs Attract Fresh Cash As Price Enters Technical 'Danger Zone'

Ethereum's price has slid into a critical technical "danger zone," testing key support levels as spot ETFs pull in fresh capital amid market uncertainty. The asset's recent drop to around $2,700 has reignited debates over whether a broader bear market has taken hold, with analysts divided on whether the decline signals a structural breakdown or a temporary correction.

The ETF landscape tells a mixed story. Ethereum spot ETFs added $55.7 million in net inflows on November 20, 2025, despite BlackRock's ETHA fund recording $53.7 million in outflows. Rival issuers like Fidelity and Bitwise offset the exit, maintaining overall investor appetite for Ethereum exposure. This divergence highlights growing institutional interest in the asset, particularly as BlackRock prepares to launch a staked Ethereum ETF, offering investors a 99% staking option with higher real yields.

On the technical front, Ethereum's breakdown below the $3,000 to $3,200 pivot zone has intensified bearish concerns. The price now hovers near the 2025 support range of $1,385 to $1,750, with analysts warning that a failure to stabilize above $2,100 could trigger further declines toward $1,500. However, some traders argue that the $2,800 support area has historically acted as a floor, with successful rebounds often preceding multi-week bull runs.

The debate over Ethereum's fundamentals adds another layer of complexity. While network staking hit a record high in November 2025, with 33 million tokens locked, broader on-chain activity remains weak. 10x Research notes that DeFi and NFT usage have stagnated for nearly two years, dragging down fee generation despite lower transaction costs. This weak demand has pushed Ethereum into a net inflationary phase, with 4.2 million new tokens issued over three years exceeding the 3.5 million burned.

Optimists point to Ethereum's role as a foundational blockchain for real-world asset tokenization, with BlackRock and other institutions increasingly adopting the network. Tom Lee, Fundstrat's CIO, argues that Ethereum's infrastructure-critical for stablecoins and asset tokenization-positions it for long-term growth, even amid short-term volatility. He projects a $7,000 target for early 2026 if the asset reclaims key Fibonacci levels above $4,150.

The coming weeks will be pivotal. Traders are closely monitoring liquidity trends, with Altcoin Vector noting that Ethereum's recent liquidity reset mirrors patterns seen before major bottoms. Meanwhile, Ethereum's weekly stochastic oscillator has entered an oversold territory, a condition that historically preceded rebounds from 2023 to 2025. Whether these signals translate into a sustained recovery or deeper capitulation will depend on institutional buying, regulatory clarity, and a resurgence in network usage.