ETF and Retail Selling Pressure Dominates Amidst Sustained Network Growth

Ethereum (ETH) Price Dips Amid Macroeconomic Concerns and ETF Outflows

Ethereum (ETH), mirroring the broader cryptocurrency market, has shown a strong correlation with macroeconomic factors this week, amidst geopolitical tensions and tariff threats. The leading altcoin has experienced a 12% decline since the week’s start.

ETF Outflows and Retail Investor Selling Pressure

The price drop reflects divestment from both traditional players and crypto-native retail investors. Spot ETH ETFs in the U.S. have recorded $569.4 million in outflows over three consecutive days of negative flows this week, according to SoSoValue data.

A similar sentiment is evident among retail investors, specifically wallets holding between 100-1,000 ETH and 1,000-10,000 ETH. These groups have continued their selling activity, distributing a combined total of 520,000 ETH since Sunday.

Whale Accumulation Remains Neutral

Accumulation by whales (wallets holding between 10,000-100,000 ETH) had previously offset selling pressure. However, net buying from this group has been largely neutral during this period.

Derivatives Market Shows Increased Open Interest

In the derivatives market, open interest has grown by 520,000 ETH to 12.99 million ETH. However, this growth isn’t solely focused on long positions, as funding rates have been fluctuating more significantly than usual.

Network Activity and Validator Queue Surge

Despite the price decline, Ethereum’s active addresses and transaction counts continue to rise to record levels, maintaining momentum since the Fusaka upgrade. However, analysts have cautioned that such increases in network activity following major upgrades tend to be short-lived.

Furthermore, the Ethereum validator entry queue has been increasing, reaching 3.13 million ETH. The total value of staked assets on the network is also at an all-time high of 36.3 million ETH.

Ethereum Price Prediction: Potential Drop to $2,627 if $2,880 Support Fails

ETH tested the support level near $2,880 this week after a rejection around the 20-week exponential moving average (EMA) and a drop below the ascending triangle support.

On the downside, ETH could find support near $2,627 – strengthened by the 200-week EMA – if it loses the $2,880 level. To the upside, ETH needs to rise above $3,470 to initiate a bullish trend.

The Relative Strength Index (RSI) is below its neutral level, while the Stochastic Oscillator is in oversold territory, indicating dominant bearish momentum.