 ▲ Ethereum (ETH) Decline / AI-Generated Image © |
Massive fund outflows have continued for four consecutive weeks from Ethereum (ETH) spot exchange-traded funds (ETFs), heightening tension across the market. As Ethereum faces the risk of breaking below the $1,950 support level, investors are closely watching whether it can escape what appears to be an endless downward spiral.
According to cryptocurrency-focused media outlet Finbold on February 17 (local time), U.S. Ethereum spot ETFs experienced approximately $1.26 billion in net outflows between January 17 and February 13. Based on SoSoValue data, if redemptions continue this week, it would mark the first five consecutive weeks of net outflows since the spring of 2025. A report from Lookonchain on the 16th already cast a shadow over the market, noting that 22,492 ETH worth $44.42 million exited in a single day.
This institutional exodus has coincided with a sharp decline in Ethereum’s spot price. During the same period, Ethereum plunged 41%, falling from $3,328 to $1,946. Market leader Bitcoin (BTC) has faced similar pressure, with $1.3 billion flowing out of Bitcoin spot ETFs as its price dropped from $95,598 to $69,382.
Ethereum is currently trading at around $1,966, down 0.72% on the daily chart, while the total cryptocurrency market capitalization has fallen 0.97% to $2.34 trillion. Notably, the Crypto Fear & Greed Index has plunged to 13, indicating extreme fear, and daily trading volume has declined by 22%. The outlet analyzed this trend not as simple panic selling but as a sign of diminishing investor confidence in the market itself.
From a technical perspective, conditions remain challenging. Ethereum is trading near $2,027, below its 200-day exponential moving average, a key indicator of long-term trends. Meanwhile, the 7-day simple moving average at $1,984 has turned into a short-term resistance level, strongly capping price gains.
Experts emphasize that for Ethereum to break out of its downward trend, it must quickly reclaim the $2,000 to $2,030 range. The market’s biggest immediate concern is whether it can successfully defend the $1,950 support level. If this support collapses, analysts warn, Ethereum could fall into a much deeper price correction.
Disclaimer: This article is for investment reference only, and no responsibility is assumed for any investment losses resulting from it. The content should be interpreted for informational purposes only.