Ethereum’s (ETH) recent pullback is starting to reflect more than just short-term price volatility. With ETH trading below the $3,000 level, the combination of severe liquidations, withering network activity and continued institutional outflows reinforces concerns about weakening demand.
While prices have so far remained above key support levels, many indicators suggest that selling pressure remains, leaving the market in a cautious hold phase.
Ethereum has fallen about 12% over the past week, underperforming several major assets during a broader market correction. The decline briefly pushed ETH towards the $2,850-$2,900 zone, triggering over $200 million in liquidations, one of the largest liquidations in recent months.
ETH's price trends slightly upwards on the daily chart. Source: ETHUSD on Tradingview
Network activity and Ethereum ETF flows signal withering participation
Beyond the price action, Ethereum’s on-chain metrics are showing signs of cooling.
The number of weekly vigorous addresses dropped from about 440,000 at the beginning of the quarter to about 324,000 in December, the lowest level since May. The number of transactions also dropped to a mid-year low, indicating reduced engagement from both retail and institutional users.
At the same time, U.S. Ethereum spot ETFs continue to experience continued outflows. Data from SoSoValue shows that over the next few sessions, more than $224 million was withdrawn from ETH ETFs, mainly from BlackRock’s ETHA fund.
Since mid-December, total net assets of U.S. spot ETH ETFs have declined by more than $3 billion, suggesting institutions are reducing their exposure rather than adding to their positions. The Coinbase Premium Index is negative, further supporting the view that selling pressure in the US has returned.
Whale sales and technical structure keep risk lower
Vast holders raise short-term pressure. Data on the chain shows over 28,500 ETH sold by several whale wallets in a brief period of time, including transactions with a total value of over $80 million.
Despite this distribution, ETH has so far avoided a keen collapse, with buyers repeatedly defending levels near $2,880.
From a technical perspective, Ethereum remains in a medium-term downtrend. The price continues to remain below key moving averages, while momentum indicators such as the RSI remain below neutral levels.
Related reading: Bitcoin ‘Death Cross’ Panic Returns: History Says It’s a Slow Signal
Resistance ranges between $3,050 and $3,120, and failure to regain this zone exposes ETH to another test at $2,800. If this support subsides, analysts will point to the $2,400-$2,600 range as the next area of concern.
Cover image from ChatGPT, ETHUSD chart from Tradingview
