8% Plunge as Ether ETFs Bleed $1.4B, Long-Term Holders Sell

The ether of Ethereum ETH$3,206.97 fell sharply from Thursday to Friday, falling more than 10% from the peak to the landing, a market-wide crypto selloff accelerated with bitcoin breaking below the $100,000 level.

The second largest cryptocurrency fell from $3,565 early Thursday to $3,060 early Friday, erasing all of last week’s rebound. It recently stabilized below $3,200, still down about 8% in the last 24 hours.

The move coincides with sales to the broad market on the US markets with stocks and bonds falling in tandem with crypto. The US government shutdown, which is right finishedweighed on liquidity conditions. Also adding to the pressure is the growing likelihood of the Federal Reserve leaving rates unchanged during the December meeting.

Since the Federal Reserve meeting in late October, when Chairman Jerome Powell threw cold water on the almost universally expected December rate cuts, U.S.-listed spot ether ETFs have seen $1.4 billion in net flows. Data Farside Investors shows Thursday’s nearly $260 million outflow was the biggest one-day bleed in a month.

In addition to this, long-term holders are also heading for the exit door. Glassnode blockchain data demonstrated that long-term holders of 3-10 years accelerate the sale to about 45,000 ETH (about $140 million at current prices) daily on a 90-day moving average, the highest distribution rate since February 2021.

Blockchain data also suggests deteriorating fundamentals. Monthly active addresses on the network fell to 8.2 million, from more than 9 million in September, while transaction fees in the past month fell by 42% to just $27 million, Token Terminal data shows

Key technical levels to watch

ETH broke a critical support level at $3,325, establishing a clear bearish trend with consecutive highs and lows, CoinDesk Research’s technical analysis model suggests.

• Support/Resistance: Primary support lies at $3,080 with secondary levels at $3,050 and $2,880. Key resistance forms at $3,330 (old support), $3,500 (main pivot), and $3,650 (high descending channels).
• Volume analysis: Sales rose to 641,103 during the $3,325 split – 71% above 24-hour norms. Subsequent volume fell to 80% of the 7-day averages, indicating potential exhaustion.
• Chart Patterns: ETH broke its April ascending channel, creating a bearish structure with lower highs. The $3,077-$3,146 consolidation range suggests a possible base formation.
• Targets & Risk/Reward: The $3,050 breakaway support exposes the $2,880 breakout, while a recovery of $3,563 is needed for bullish momentum. A decisive push above $3,500 targets $3,650-$3,800.

Disclaimer: Parts of this article were generated with the assistance of AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk’s full AI Policy.