Ethereum’s (ETH) recent pullback is beginning to reflect more than short-term price volatility. As ETH trades below $3,000, a combination of massive liquidations, declining network activity, and sustained institutional outflows reinforces concerns about weakening demand.
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Even though prices have so far held above key support levels, many indicators suggest that selling pressure remains firmly in place, leaving the market in a cautious hold pattern.
Over the past week, Ethereum has fallen approximately 12%, underperforming several major assets during a broader market correction. The decline pushed ETH briefly toward the $2,850-$2,900 area, triggering a selloff of over $200 million, one of the largest selloff events in recent months.
ETH's price trends slightly upwards on the daily chart. Source: ETHUSD on Tradingview
Network Activity and Ethereum ETF Flows Signal Declining Participation
Beyond price action, Ethereum’s on-chain metrics show signs of slowing participation.
Weekly active addresses fell from around 440,000 at the start of the quarter to around 324,000 in December, the lowest level since May. The number of transactions also fell to its lowest level mid-year, indicating reduced engagement from retail and institutional users.
At the same time, Ethereum spot ETFs in the United States continue to experience persistent outflows. Data from SoSoValue shows that more than $224 million was withdrawn from ETH ETFs over several consecutive sessions, led primarily by BlackRock’s ETHA fund.
Since mid-December, the total net assets of US spot ETH ETFs have declined by more than $3 billion, suggesting that institutions are reducing their exposure rather than increasing their positions. The Coinbase Premium Index turning negative further supports the idea that US selling pressure has returned.
Whale sales and technical structure keep risks lower
Large holders added to the short-term pressure. On-chain data shows over 28,500 ETH sold by a handful of whale wallets over a short period of time, including transactions exceeding $80 million in total value.
Despite this breakdown, ETH has so far avoided a hard breakout, with buyers repeatedly defending levels near $2,880.
From a technical perspective, Ethereum remains in a medium-term downtrend. Price continues to trade below key moving averages, while momentum indicators such as the RSI remain below neutral levels.
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Resistance lies between $3,050 and $3,120, and failure to reclaim this area leaves ETH vulnerable to another test of $2,800. If this support gives way, analysts point to the $2,400-$2,600 range as the next area of interest.
Cover image from ChatGPT, ETHUSD chart from Tradingview
