Key takeaways:

• Long-term investors are selling 45,000 ETH per day, increasing selling pressure.

• Ether’s 50-week EMA and bear flag target is $2,500.

The drop in the price of Ether (ETH) towards $3,000 on Friday was preceded by a significant number of offloads from long-term holders, which some analysts believe could lead to a deeper price correction.

Long-term holders are withdrawing

Long-term ether holders, i.e. entities holding ETH (ETH) for more than 155 days, intensified their activity on the sell side as the price dropped below key support levels.

Analyzing the volume of ETH spent by age using a 90-day moving average, Glassnode analysts he said that 45,000 ETH worth approximately $140 million leaves the wallets of holders every day for three to ten years.

Related: The chance of Ether achieving growth before the end of 2025 depends on 4 key factors

Glassnode wrote:

“This is the highest level of spending by savvy investors since February 2021.”

This coincides with an augment in Ethereum spot fund (ETF) outflows, which further depresses the price of ETH. According to data from these investment products, net outflows were $259 million on Thursday, marking the worst day since October 10. data with SoSoValue.

This marked the fourth consecutive day of outflows from Ethereum ETFs as the end of the US government’s 43-day shutdown failed to reignite investor appetite.

Cumulative net outflows from Ethereum ETFs since early November of $1.42 billion signal sturdy institutional selling pressure, fueling fears of a deeper correction.

Ethereum onchain data signals degenerating demand

Onchain activity over the last seven days paints a disturbing picture. While Ethereum continues to lead its competitors by securing approximately 56% of the market’s total locked value (TVL), this rate has declined by 21% in the last 30 days, according to DefiLlama.

Even more concerning is the decline in network fees, reflecting decreasing demand for block space, which is reinforced by the weakness in the Ether price around $3,000.

Ethereum fees over the past 30 days dropped to $27.54 million on Friday, a decline of 42%. Solana’s fees dropped by just 9.8%, while BNB network revenues dropped by 45%, furthering the bearish trend in the market.

This could continue to put pressure on the Ether price in the coming weeks, especially when combined with growing market concerns, which have returned to levels last seen during the sell-off triggered by US President Donald Trump’s April tariff announcements.

The ETH price bear flag is expected to reach $2,500

Many analysts warn that the current downtrend could accelerate if there is no clear bullish turnaround, which could augment pressure on day traders and miniature shareholders.

“Ethereum Loses 50-Week EMA, Key Macro Support” he said Bitcoinsensus analyst in Friday’s X post, referring to the $3,350 level.

Previous collapses have triggered major downward moves, with the latest one resulting in a 60% decline to $1,380 from $3,400 between overdue January and early April.

Bitcoinsensus added:

“The trend will remain bearish unless the price recovers to this level quickly.”

Ether’s price action on the daily time frame confirmed the bear flag as it fell below $3,450, coinciding with the 200-day SMA and the lower boundary of the bear flag.

The next major support is at the psychological level of $3,000, which bulls need to aggressively defend.

A loss of this level would open the way for a fresh move down towards the pattern’s measured target of $2,280, representing a 23% decline from the current level.

As Cointelegraph reports, $3,000 remains a key support zone for the ETH/USD pair, and maintaining this zone is crucial to avoid further losses.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.