Ethereum price faces stiff resistance amid ETF outflows

Ethereum’s price has struggled to break above the $3,000 level over the past week, weighed down by continued outflows from spot Bitcoin and Ethereum exchange-traded funds.

That pattern has persisted into this week, with both BTC and ETH funds seeing redemptions as investors adjust portfolios toward year-end.

Against this backdrop, Ethereum remains range-bound below the $3,000 mark during the holiday period.

Broader cryptocurrency markets have also underperformed relative to gold, which has surged to record highs above $4,500, highlighting a rotation toward traditional safe-haven assets.

While Ethereum has seen some support from recent purchases by BitMine, ongoing ETF outflows, and the reactivation of a long-dormant wallet holding 2,000 ETH have reinforced a cautious tone among market participants.

Ethereum price under pressure amid ETF outflows

Ethereum’s price has, in recent weeks, been hampered by substantial outflows from major US spot Ethereum ETFs.

This downward pressure intensified ahead of the Christmas holiday, as BTC and ETH funds experienced redemptions driven by year-end portfolio rebalancing. 

According to data from SoSoValue, spot Bitcoin ETFs recorded $188.6 million in net outflows on Tuesday, marking the fourth consecutive day of negative flows.

BlackRock’s IBIT saw the largest exodus, with $157.3 million withdrawn.

Other prominent funds, including Fidelity’s FBTC, Grayscale’s GBTC, and Bitwise’s BITB, also reported outflows.

Bitcoin has seen outflows in six out of the past eight trading days. Investors pulled over $3 billion in ETFs flows in November, and so far, it’s over $629 million in December.

The situation is similarly challenging for Ethereum ETFs. Data shows $95.5 million in net outflows on Tuesday, Dec. 23. No ETF witnessed inflows.

Grayscale’s ETHE led the decline, with $50.9 million exiting the fund. After a positive day of net inflows on Monday, Ethereum spot ETFs flipped red on Tuesday. That marks just two out of 10 trading days where Ethereum has recorded inflows.

The outflows, with $643 million last week, reflect waning investor confidence. As noted, broader market uncertainties, including Federal Reserve interest rate policies and reduced risk appetite, have impacted investors.

Lookonchain identified on Dec. 24 that BlackRock had just deposited 9,976 ETH worth about $29.23 million to Coinbase Prime.