The price of Ethereum has recently plunged deeper into a bearish trend, creating heightened anxiety among investors about the cryptocurrency”s future. A confluence of factors, including weakening momentum, substantial ETF outflows, and increased selling from long-term holders, has contributed to this downturn. With the latest price movements, the $3,000 mark is back in focus, prompting questions about whether the downward momentum can push prices below this critical support level.
According to new insights from 10x Research, Ethereum is now trading significantly below both the 7-day and 30-day moving averages. This shift highlights a clear transition toward bearish momentum. Over the past week, Ethereum has seen a decline of -6.6%, failing to reclaim any short-term trendline during the ongoing sell-off. The accompanying charts demonstrate a consistent downward trajectory for ETH-USD throughout early November, indicating that the overall market structure has weakened considerably.
This technical decline coincides with a dramatic increase in redemptions within the Ethereum ETF sector. Data from SoSoValue reveals that spot ETH ETFs have experienced over $1.4 billion in net outflows since the start of November, reflecting a notable shift in institutional interest. The continuous pressure from sellers combined with diminishing ETF demand has established a cycle that perpetuates Ethereum”s decline every time a support level fails.
On-chain activity shows that long-term holders, defined as wallets that have maintained their assets for three to ten years, are now selling their holdings at an unprecedented rate not seen since 2021. Typically inactive during most market phases, this group”s recent activity has introduced a significant supply wave that exchanges are struggling to manage. Nevertheless, some larger whale wallets have started accumulating ETH during this downturn, purchasing substantial amounts valued at over $1 billion. However, this accumulation has not been sufficient to counterbalance the broader selling pressure from long-term holders and ETF outflows, resulting in Ethereum remaining within a downward-sloping trend channel.
Currently, Ethereum is trading around $3,182, with its intraday low reaching as low as $3,023. This situation leaves little room between the current price and the crucial support area at $3,000. If the prevailing selling pressure persists and prices drop below the $3,150 to $3,200 range, a further decline to $3,000 appears increasingly probable in the coming week.
