Ethereum News Today: Ethereum Slides Toward $2,850 as ETF Outflows and Bets Worsen Sell-Off Risk

Ethereum is facing heightened bearish pressure, with analysts warning that a close below key support levels could trigger a steep slide toward $2,000. The token has lost momentum amid broader risk-off sentiment and heavy liquidations in the futures market. Institutional outflows and macroeconomic uncertainty continue to weigh on the market.

Recent price action shows Ethereum hovering near $2,900, a level that has been contested multiple times over the past week.

A break below this level could expose deeper support at $2,850 and open the door to further declines toward $2,600 and $2,380.

On-chain data and ETF flows indicate that Ethereum is in a consolidation phase, with accumulation efforts by long-term holders. However, rising ETF outflows and weak buyer participation suggest that institutional demand has not yet turned bullish.

Market Dynamics and Price Pressure

The Ethereum price is currently pinned below key trendlines and exponential moving averages, reinforcing the bearish structure. Sellers have repeatedly defended the $2,900 level, limiting any meaningful recovery attempts.

Daily charts show that Ethereum remains below the 20-day, 50-day, and 100-day EMAs, which act as immediate resistance levels. A sustained move above these averages is needed to trigger a meaningful reversal. However, sellers continue to control the short-term narrative, with price struggling to maintain any upside momentum.

ETF outflows have contributed to bearish sentiment. Ethereum ETFs recorded outflows of over $220 million in recent sessions, with BlackRock alone responsible for nearly $221 million of the withdrawal. These outflows signal distribution rather than accumulation, weakening the token's near-term outlook.

Institutional Behavior and On-Chain Indicators

Despite the bearish pressure, Ethereum is showing signs of accumulation by large holders. According to on-chain metrics, whale addresses have steadily increased their cost basis, pushing the realized price toward the $3,000 zone. This level has historically acted as a strong support area, with whales showing a preference to buy the dip rather than sell under pressure.

Ethereum treasury company BitMine has also added to its holdings, acquiring 102,259 ETH last week. The firm's total Ethereum holdings now exceed 3.96 million tokens, valued at nearly $12 billion. BitMine has stated that it remains committed to accumulating 5% of Ethereum's circulating supply, despite sitting on over $3 billion in unrealized losses.

The broader institutional confidence in Ethereum is also reflected in ETF flows. While outflows have dominated in recent weeks, the overall trend remains net positive for the year. ETF inflows have been a key driver of institutional demand, with several funds maintaining steady participation in the market.

Key Technical Levels and Outlook

The next critical test for Ethereum is a close below $2,880, which would confirm the breakdown of the recent consolidation range. A move past this level could expose support at $2,750 and then $2,500, especially if selling pressure intensifies.

On the upside, Ethereum would need to reclaim the $3,074 level to show any signs of reversal. A sustained move above the 50-day EMA near $3,249 could open the path toward $3,450 and beyond. However, the Supertrend indicator and key EMAs continue to act as overhead resistance.

The Relative Strength Index (RSI) has fallen below the neutral level, while the Stochastic Oscillator is approaching oversold territory. A move into oversold conditions could trigger a short-term bounce, but it would need to be followed by a strong move above key resistance levels to signal a broader reversal.

Risks to the Outlook

The immediate risk for Ethereum is a continued deterioration in institutional demand. ETF outflows have been a major headwind in recent weeks, and any further selling from large funds could accelerate the downtrend.

Macro risks also remain elevated, with investors closely watching the U.S. jobs report, inflation data, and the potential for new regulatory actions. A hawkish shift from the Federal Reserve or new restrictions on crypto assets could trigger further panic in the market.

On the technical front, the breakdown of the $2,850 support level would be a major red flag for bulls. A move below this level could expose Ethereum to a rapid slide toward the $2,000 psychological level, especially if the broader market remains bearish.

What This Means for Investors

For short-term traders, Ethereum remains a high-risk asset, with both significant upside and downside potential. The market is currently in a fragile balance, with sellers maintaining control but buyers showing some signs of resistance near key support levels.

Long-term investors, on the other hand, may see the current price correction as an opportunity to accumulate at lower levels. Institutional demand has been a key driver for Ethereum, and any signs of renewed ETF inflows could signal a shift in market sentiment.

The broader cryptocurrency market is also watching closely for any signs of stabilization. Ethereum's performance often serves as a barometer for the altcoin market, with its price movements influencing other tokens, including XRP and Solana.

For now, the focus remains on the $2,850–$2,900 range, where the next major price direction is expected to be decided.