Ethereum News Today: Ethereum price drops below $4,200 amid ETF outflows and institutional profit-taking

Generated by AI AgentCoin World
Tuesday, Aug 19, 2025 9:05 pm ET1min read
ETH
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Aime RobotAime Summary

- Ethereum fell below $4,200 due to ETF outflows and institutional profit-taking, with $196.62M exiting on August 18 alone.

- Longling Capital sold $21.56M ETH to secure profits, while Binance's large-volume offloading intensified selling pressure.

- Analysts highlight $3,900 as critical support and 20-EMA ($4,400) as potential bounce zones with 70% rebound probability.

- Despite short-term weakness, $4,700 resistance and accumulation at +1σ Active Realized Price suggest healthier entry points.

Ethereum's price fell below $4,200 after encountering resistance near $4,770, driven by several factors including significant

Ethereum
ETF outflows and institutional profit-taking. Daily ETF outflows spiked, with $196.62 million recorded on August 18 alone, adding to earlier outflows like $639.36 million on August 14 and $59.24 million on August 15. These outflows correlate with the downward movement in Ethereum's price from recent highs [1]. While there were some days of inflows—such as $799.14 million on August 13 and $523.92 million on August 12—the overall pattern indicates fluctuating institutional demand and ongoing selling pressure [1].

Institutional activity further exacerbated the decline. Longling Capital sold 5,000 ETH worth $21.56 million to secure profits after buying 123,405 ETH at $2,349 and later selling 70,800 ETH at $3,502, generating $184 million in profit over two years [1]. Additionally, analyst Ted highlighted increased selling pressure from Binance, where large volumes of ETH are offloaded, possibly to trigger leveraged long liquidations. This strategy has historically created volatility that favors institutional traders over retail investors [1].

Analysts have identified key levels for Ethereum to watch. The $3,900 level is considered a critical support area, with Analyst Lau noting it as a favorable accumulation point before a potential rebound toward $4,800 and beyond. Similarly, Michaël van de Poppe observed Ethereum's return to the 20-EMA region, indicating a potential bounce area. Glassnode data also suggests that the pullback to $4,400 helped stabilize downward pressure and that the 20-EMA has a 70% probability of supporting a rebound [1].

Despite the short-term weakness, investor activity during the pullback from $4,700 has shown resilience. The +1σ Active Realized Price around $4,700 has historically served as resistance and may continue to do so, reinforcing the idea that current levels offer healthier entry points [1]. These dynamics, combined with broader market conditions, have contributed to Ethereum’s recent price correction.

Source: [1] Top Reasons Why Ethereum Price Dropped Below $4.2K: What’s Next For ETH? (https://coinmarketcap.com/community/articles/68a51baa8e435101db81b305/)