Ethereum's Price Pressure Intensifies: Selling by Long-Term Holders and ETF Outflows Sharpen

The recent price drop of Ethereum has brought the crypto market into an uncertain phase. The negative price movement is characterized by a decrease in momentum, significant ETF (Exchange Traded Fund) outflows and selling by long-term holders have led to concerns about a potential deeper correction for the cryptocurrency. The price has now re-entered the $3.000 range, raising the question of whether the current downward momentum is strong enough to put pressure on this support.

Recent data from 10x Research shows that Ethereum is trading firmly below both the 7-day and 30-day moving averages. This development confirms a clear shift into a bearish (downward) trend. Over the past week, the price has seen a significant decline of -6,6% without ever being able to reclaim the short-term trendline during the selling phase.

Research group charts show ETH-USD declining in early November, while both moving averages curved downward—a sign that the market structure has completely weakened. This technical decline coincides with one of the largest Ethereum ETF pullbacks ever. According to data from SoSoValue, the spot market ETH ETFs have seen over $1,4 billion in net outflows since early November, demonstrating a dramatic shift in institutional demand. The combination of persistent selling pressure and declining ETF demand creates a vicious cycle, further depressing the ETH price each time a support level breaks.

Selling Pressure from Long-Term Holders Increases, But Whales Accumulate

On-chain data aggregates paint a picture of an ecosystem under pressure. Data shows that long-term holders, wallets that have held their ETH for three to ten years, are selling faster now than they have since 2021. This group is typically inactive during most market phases; therefore, their recent activity introduces a surge in supply that exchanges are struggling to absorb.

However, the dynamics aren't entirely one-dimensional. Some large whale wallets have aggressively jumped on the dip, buying hundreds of thousands of ETH for over $1 billion. However, the volume of this accumulation isn't large enough to offset the broader selling pressure from long-term holders or ETF outflows. As a result, Ethereum's price remains trapped within a downward-sloping trend channel.

ETH is currently trading around $3.182, with an intraday low of $3.023. This leaves little room between the current level and the support zone at $3.000. If selling pressure persists and pushes the price below $3.150 to $3.200, an outright drop to $3.000 becomes increasingly likely in the coming week.

Frequently Asked Questions

What factors are contributing to Ethereum's recent price drops?
The price declines are primarily due to weakened momentum, significant ETF outflows, and selling by long-term holders. These factors create a negative feedback loop that further depresses the price.

Why are long-term holders now selling their ETH?
Long-term holders, who are typically inactive, are now selling at an accelerated pace, contributing to a large supply that is putting pressure on the markets. This movement may be related to fears of losses in a broader downward market environment.

What are the implications of whale accumulation?
Although whales are buying a significant amount of ETH during this dip, their cumulative influence is currently insufficient to counter the selling pressure from long-term holders and ETF outflows. This keeps the price under pressure, with potential consequences for investors.