Ethereum News Today: Ethereum Slides Past $2,900 as ETF Outflows Fuel Selling Pressure

Ethereum's price has shown growing bearish momentum, with bulls losing short-term control in recent weeks. Analysts are closely watching key price levels as the altcoin struggles to maintain stability around $2,900. Market conditions have deteriorated amid broader crypto market weakness and increased institutional selling pressure.

The cryptocurrency's price has fallen sharply from its 2025 high of $4,955, currently trading over 40% lower. This slide has reignited discussions about the token's potential end-of-year trajectory and whether it can regain bullish momentum in the near future.

Ethereum ETF outflows have surged, compounding pressure on the token. During the week starting December 15, Ethereum ETFs recorded over $600 million in redemptions, with BlackRock's ETHA leading the outflow with $467 million in withdrawals according to analyst data. Fidelity and Grayscale also reported significant outflows, signaling reduced institutional interest at current price levels.

Key Support Levels and URPD Analysis

Ethereum's price structure has drawn attention from analysts, particularly around the $2,772 level, which has shown strong on-chain accumulation according to URPD data. This level appears to be a psychological support point, as a significant number of investors have historically held their ETH at this price.

Analyst Ali Martinez notes that this area could serve as a crucial cushion in the event of further bearish movement.

Beyond $2,772, additional support levels are in focus. The next key support is at $2,489, where a notable amount of supply was last transacted, but this level may offer only temporary relief if Ethereum's downward trend continues according to market analysis. Should Ethereum fall further, a critical support level at $1,866 could become the next target, potentially marking a significant turning point for the altcoin.

Institutional Selling and Market Weakness

Institutional selling has exacerbated Ethereum's struggles, with Ethereum ETFs continuing to see net outflows. The seven-day outflow streak has drained over $685 million from Ethereum ETFs, with BlackRock's ETHA leading the redemptions according to BTC data. This trend suggests that institutional investors are reducing exposure, which could contribute to further price weakness in the near term.

The broader crypto market is also feeling the pressure, with Bitcoin ETFs experiencing a similar trend of outflows. Bitcoin ETFs recorded $158 million in outflows as of December 19, indicating that crypto investors are broadly de-risking their exposure according to market reports. This widespread sell-off reflects a cautious market sentiment, with investors bracing for a potential deepening bearish trend.

Market Projections and Analyst Opinions

Analysts are divided on the near-term outlook for Ethereum. Fundstrat, a prominent macro analysis firm, projects that Ethereum could slide toward $1,800–$2,000 in 2026 if the current bearish momentum continues. This projection is part of a broader bearish bias for the crypto market, which includes Bitcoin and Solana in its correction scenario.

Meanwhile, some analysts remain cautious but suggest that Ethereum's long-term fundamentals-such as network upgrades and institutional adoption-could still provide a floor for the price. For instance, Ethereum's Fusaka mainnet upgrade in early December has improved layer-2 scalability and reduced transaction fees, which could drive increased adoption of Ethereum-based applications in the long run according to Cointelegraph analysis.

What This Means for Investors

For investors, the current Ethereum price action presents both risks and opportunities. The immediate bearish trend suggests that short-term traders should approach with caution, particularly as key support levels are being tested. However, long-term investors may find the current price levels attractive, especially if Ethereum's fundamentals remain resilient. The next few weeks will be crucial in determining whether Ethereum can stabilize or if the bearish momentum will lead to a deeper correction. Traders will be closely monitoring institutional ETF flows, as well as Ethereum's ability to defend key support levels such as $2,772 and $2,489. A sustained rebound above $3,000 could signal a potential reversal, but the path remains uncertain amid ongoing market weakness.