Ethereum (ETH) is currently experiencing intense selling pressure, leading to a significant downturn in its market value. A confluence of factors, ranging from major institutional sell-offs to sustained outflows from U.S. Ethereum Spot ETFs, indicates a weakening market sentiment and potentially further price depreciation for the popular cryptocurrency.
Institutional and ETF Outflows Drive Bearish Momentum
The sell-off has been notably spearheaded by entities like SharpLink, the first publicly listed company with Ethereum as its primary asset. SharpLink recently offloaded a substantial 10,975 ETH, valued at $33.54 million, on the Galaxy Digital OTC exchange. This institutional action coincided with a broader trend of capital withdrawal from U.S. Ethereum Spot ETFs, which have recorded seven consecutive days of outflows. Collectively, these funds have seen $1.022 billion exit, signaling a potential decline in American investor interest and reinforcing a bearish outlook for ETH.
Widespread Investor Selling and Price Impact
Beyond institutional movements, data from CryptoQuant reveals a significant increase in Ethereum reserves across all exchanges over the past week, with investors and long-term holders dumping 152,426 ETH. This widespread selling has directly impacted ETH's price, causing it to fall below $2,900 and shedding over 20% of its value in November alone. Technical analysis indicates a clear downtrend, with the Average Directional Index (ADX) at 43.60 confirming strong bearish momentum. Experts suggest ETH could potentially decline further, possibly reaching as low as the $2,750 level, especially if it continues to trade below the $3,000 threshold. The high trading volume observed during this price decline further underscores market participants reinforcing the bearish direction.
