Ethereum‘s price has faced consistent downward pressure in recent months, echoing trends seen in other major cryptocurrencies. On Sunday, ETH traded at $2,235, standing just below a crucial resistance level at $2,781.
Surging ETF outflows intensify pressure
US-based investors have accelerated their selloff of Ethereum exchange-traded funds, driven by concerns that the coin might remain weak in the near term. Spot ETH ETFs recorded outflows of $93 million on Friday, following $99 million in redemptions on Thursday. Altogether, these funds shed $431 million during the previous week, marking a sixth consecutive week of outflows.
So far this month, total outflows from Ethereum ETFs have reached $365 million, after funds saw $1.6 billion in redemptions throughout the previous month.
Compared to other leading cryptocurrencies, Ethereum ETF outflows have been significantly higher. Bitcoin, Solana, and XRP ETFs experienced relatively smaller redemptions over the same period.
ETF data shows spot Ethereum funds posted $431 million in outflows last week—well above other digital asset ETFs—with total monthly redemptions now at $365 million, following last month’s $1.6 billion exodus.
Political changes and regulatory concerns
Analysts have linked the increased withdrawals to the results of the recent US midterm elections, where Democrats secured a dominant position. The party is on track to hold 56 Senate seats and may obtain 260 seats in the House of Representatives.
Market watchers expect current Democratic leaders to focus further on digital asset regulation. Massachusetts Senator Elizabeth Warren, a vocal critic of the cryptocurrency sector, is set to become chair of the Senate Banking Committee. Her appointment has fueled speculation about stricter oversight for the crypto market moving forward.
Mini dictionary: Senate Banking Committee — A committee within the United States Senate that oversees banking and financial institutions, regulatory policy, and financial markets, including cryptocurrency-related legislation.
Weakening on-chain metrics
Ethereum’s on-chain data has also turned negative. The network’s total value locked (TVL) has dropped to $43.2 billion from an early-month high close to $50 billion. Additionally, Ethereum’s stablecoin sector has struggled, with market capitalization falling to $137 billion compared to a year-to-date peak near $170 billion. Analysts had earlier anticipated continued stablecoin expansion, particularly in payment applications.
| Metric | Current Value | Recent High |
|---|---|---|
| ETH Price | $2,235 | $2,809 (September) |
| TVL | $43.2 billion | ~$50 billion (this month) |
| Stablecoin Market Cap | $137 billion | ~$170 billion (YTD high) |
| DEX Volume (Quarter) | $54 million | $298 billion (last September quarter) |
| Fees (Quarter) | $25 million | $34.6 million (previous quarter) |
Furthermore, Ethereum is generating lower revenue from transaction fees, earning $25 million this quarter—down from $34.6 million in the previous quarter. At its most active, quarterly fees exceeded $549 million, positioning Ethereum as the most profitable blockchain at that time.
Decentralized exchange (DEX) volumes on Ethereum have also declined, with $54 million processed this quarter compared to a $298 billion high in the third quarter of last year.
Technical outlook and key levels
From a technical standpoint, Ethereum has followed a consistent downtrend since September, falling from a peak of $2,809 to the current $2,235. ETH has dropped below both the 50-day and 100-day Exponential Moving Averages (EMA), signifying ongoing bearish momentum.
The token continues to trade below the Supertrend indicator, which signals that sellers maintain control over price direction. Analysts suggest a further decline remains likely, with $2,000 marked as a significant support level to monitor.
Technical charts indicate that ETH remains weak, with its price having slipped below critical moving averages and the Supertrend indicator—pointing to ongoing selling pressure.
