Ether (ETH) experienced a sharp drop this Friday, plunging more than 8% and breaking the $3,100 support level. The selling pressure intensified due to continuous capital outflows in Ether ETFs (spot) in the U.S. Furthermore, on-chain data from Glassnode shows accelerated selling by long-term holders.
The second-largest crypto asset fell from a high of $3,565 on Thursday to a session low of $3,060 on Friday. This correction erased all of the past week’s gains. Data from Farside Investors reveals that spot Ether ETFs have seen over $1.4 billion in net outflows since late October. Thursday saw the largest single-day bleed in a month, reaching nearly $260 million.
Is LTH Selling a Bigger Warning Sign Than ETFs?
The pressure isn’t just coming from investment products. Glassnode data indicates that long-term holders (3-10 years) are selling. Their distribution pace is the highest since February 2021, liquidating approximately 45,000 ETH (about $140 million) daily on a 90-day average. Likewise, the network’s fundamentals, according to Token Terminal, are deteriorating. Monthly active addresses fell from 9 million to 8.2 million, and fees collapsed by 42%.
This weakness in Ethereum coincides with a broad market selloff, with Bitcoin (BTC) losing the $100,000 level. The Federal Reserve’s hawkish stance, ruling out December rate cuts, has dampened risk appetite. Technically, ETH broke critical support at $3,325. Analysts are watching $3,080 and $3,050 as the next key support levels.
The cryptocurrency is now stabilizing just below $3,200, but the trend is bearish. The confluence of adverse macroeconomic factors and strong sales from institutions (ETFs) and veterans (LTH) creates a complex picture. The companies in the sector are watching to see if the asset can form a base in the $3,077 range or if it will continue its descent toward $2,880.
