Ethereum (ETH) Price News: A 8% Plunge as Ether ETFs Bleed $1.4B, Long-Term Holders Sell
The crypto market took a hit on Friday as Ethereum's Ether (ETH) price plunged below $3,100, accelerating a broader selloff with Bitcoin losing the $100,000 mark. This downward trend continued into the weekend, with Ether falling over 10% from its peak to trough, erasing all gains from the previous week.
The selloff coincided with a broader market downturn, as stocks and bonds fell in tandem with cryptocurrencies. The recent U.S. government shutdown, which has just ended, and the increasing likelihood of the Federal Reserve keeping rates unchanged at their December meeting, have weighed on liquidity conditions. This has contributed to a $1.4 billion net outflow from U.S.-listed spot Ether ETFs since the Federal Reserve's late October meeting, with a significant $260 million outflow on Thursday.
Long-term holders are also exiting the market. Blockchain data from Glassnode shows a surge in selling activity among long-term holders (3-10 years) to approximately 45,000 ETH (around $140 million) daily over the past 90 days, the highest distribution pace since February 2021. This suggests a growing sentiment of uncertainty among long-term investors.
Fundamentals are also deteriorating. Monthly active addresses on the Ethereum network have fallen to 8.2 million, down from over 9 million in September, while transaction fees have collapsed by 42% to just $27 million over the past month, according to Token Terminal data.
Key technical levels to monitor include a primary support level at $3,080, with secondary floors at $3,050 and $2,880. Resistance levels are at $3,330 (former support), $3,500 (main pivot), and $3,650 (descending channel highs).
The chart patterns indicate a bearish structure with lower highs, and the $3,077-$3,146 consolidation range suggests a possible base formation. Breaking the $3,050 support level could expose a downside of $2,880, while reclaiming $3,563 is necessary for bullish momentum. A decisive push above $3,500 targets $3,650-$3,800.
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