Ethereum Plunges: Is a Sub-$3,000 Crash Imminent?
Ethereum has found itself in a deepening bearish trend, its price sliding significantly over the past week and bringing the critical $3,000 support level back into sharp focus. A confluence of weakening market momentum, substantial outflows from Ethereum Exchange-Traded Funds (ETFs), and accelerated selling by long-term holders is fueling concerns about a more pronounced correction for the second-largest cryptocurrency.
Technical Indicators and Institutional Exodus Drive Downward Pressure
Recent analysis from 10x Research indicates that Ethereum is now trading conspicuously below its 7-day and 30-day moving averages, solidifying a clear bearish shift in momentum. The price has recorded a -6.6% decline over the past week, struggling to reclaim any short-term trendlines amidst the ongoing sell-off. This technical deterioration coincides with record redemptions in the Ethereum ETF market, with SoSoValue reporting over $1.4 billion in net outflows since early November. This decisive shift in institutional appetite, combined with sustained selling, has created a negative feedback loop that consistently pulls ETH prices lower whenever support levels are breached.
Long-Term Holders Liquidate While Whales Accumulate Amidst Market Strain
On-chain data reveals a complex ecosystem under pressure. Long-term Ethereum holders, those who have retained their coins for three to ten years, are currently selling at their fastest rate since 2021. This unexpected activity from typically dormant wallets has introduced a significant supply wave that exchanges are struggling to absorb. Interestingly, the market dynamic isn't entirely one-sided; several large whale wallets have seized the opportunity during this downturn, aggressively accumulating hundreds of thousands of ETH, totaling over $1 billion. However, this whale accumulation has not been sufficient to offset the broader selling pressure from long-term holders and ETF outflows, leaving Ethereum trapped within a downward-sloping trend channel. Currently trading around $3,182, with an intraday low of $3,023, Ethereum faces a narrow margin before retesting the psychological $3,000 support zone. Should sellers maintain dominance and push the price below the $3,150 to $3,200 range, a direct slide towards $3,000 appears increasingly probable in the coming week.
