The post Ethereum Price Faces Selloff Risk – Major Drop Coming? appeared on BitcoinEthereumNews.com. Leading altcoin Ethereum has rebounded slightly over the past 24 hours, recording a modest 1% gain to trade near the $4,000 level at press time.  This comes amid today’s broader improvement in market sentiment across the crypto sector. However, despite the recovery, on-chain data suggests that bearish pressure remains firmly in play. Sponsored Sponsored ETF Outflows Threaten Ethereum’s Near-Term Recovery One of the most significant red flags comes from the dip in institutional flows into the altcoin.  According to SosoValue, net outflows from spot ETH exchange-traded funds (ETFs) totaled $796 million this week, bringing the month-to-date liquidity exit from these funds to $388 million. For token TA and market updates: Want more token insights like this? Sign up for Editor Harsh Notariya’s Daily Crypto Newsletter here. Total Ethereum Spot ETF Net Inflow. Source: SosoValue If this pace continues, September will mark the first month of net outflows for ETH ETFs since March. This highlights the weakening institutional demand for the asset. ETF flows are a key marker of investor sentiment, and the persistent outflows indicate that institutional players are steadily exiting positions. With these big-money backers retreating, ETH’s ability to sustain a push above $4,000 is increasingly under threat. Further, the sentiment among ETH’s long-term holders has progressively worsened, as reflected by its climbing Liveliness metric. Per Glassnode, this key metric sits at a year-to-date high of 0.70, indicating strong selloffs from this investor cohort. Sponsored Sponsored ETH Liveliness. Source: Glassnode  Liveliness measures the movement of long-held tokens by calculating the ratio of coin days destroyed to the total coin days accumulated. When it drops, LTHs are moving their assets off exchanges and opting to hold. Conversely, as with ETH, when the metric climbs, long-held tokens are being moved or sold, signaling profit-taking by long-term holders. This trend contributes to the… The post Ethereum Price Faces Selloff Risk – Major Drop Coming? appeared on BitcoinEthereumNews.com. Leading altcoin Ethereum has rebounded slightly over the past 24 hours, recording a modest 1% gain to trade near the $4,000 level at press time.  This comes amid today’s broader improvement in market sentiment across the crypto sector. However, despite the recovery, on-chain data suggests that bearish pressure remains firmly in play. Sponsored Sponsored ETF Outflows Threaten Ethereum’s Near-Term Recovery One of the most significant red flags comes from the dip in institutional flows into the altcoin.  According to SosoValue, net outflows from spot ETH exchange-traded funds (ETFs) totaled $796 million this week, bringing the month-to-date liquidity exit from these funds to $388 million. For token TA and market updates: Want more token insights like this? Sign up for Editor Harsh Notariya’s Daily Crypto Newsletter here. Total Ethereum Spot ETF Net Inflow. Source: SosoValue If this pace continues, September will mark the first month of net outflows for ETH ETFs since March. This highlights the weakening institutional demand for the asset. ETF flows are a key marker of investor sentiment, and the persistent outflows indicate that institutional players are steadily exiting positions. With these big-money backers retreating, ETH’s ability to sustain a push above $4,000 is increasingly under threat. Further, the sentiment among ETH’s long-term holders has progressively worsened, as reflected by its climbing Liveliness metric. Per Glassnode, this key metric sits at a year-to-date high of 0.70, indicating strong selloffs from this investor cohort. Sponsored Sponsored ETH Liveliness. Source: Glassnode  Liveliness measures the movement of long-held tokens by calculating the ratio of coin days destroyed to the total coin days accumulated. When it drops, LTHs are moving their assets off exchanges and opting to hold. Conversely, as with ETH, when the metric climbs, long-held tokens are being moved or sold, signaling profit-taking by long-term holders. This trend contributes to the…

Ethereum Price Faces Selloff Risk – Major Drop Coming?

Leading altcoin Ethereum has rebounded slightly over the past 24 hours, recording a modest 1% gain to trade near the $4,000 level at press time. 

This comes amid today’s broader improvement in market sentiment across the crypto sector. However, despite the recovery, on-chain data suggests that bearish pressure remains firmly in play.

Sponsored

Sponsored

ETF Outflows Threaten Ethereum’s Near-Term Recovery

One of the most significant red flags comes from the dip in institutional flows into the altcoin.  According to SosoValue, net outflows from spot ETH exchange-traded funds (ETFs) totaled $796 million this week, bringing the month-to-date liquidity exit from these funds to $388 million.

For token TA and market updates: Want more token insights like this? Sign up for Editor Harsh Notariya’s Daily Crypto Newsletter here.

Total Ethereum Spot ETF Net Inflow. Source: SosoValue

If this pace continues, September will mark the first month of net outflows for ETH ETFs since March. This highlights the weakening institutional demand for the asset.

ETF flows are a key marker of investor sentiment, and the persistent outflows indicate that institutional players are steadily exiting positions. With these big-money backers retreating, ETH’s ability to sustain a push above $4,000 is increasingly under threat.

Further, the sentiment among ETH’s long-term holders has progressively worsened, as reflected by its climbing Liveliness metric. Per Glassnode, this key metric sits at a year-to-date high of 0.70, indicating strong selloffs from this investor cohort.

Sponsored

Sponsored

ETH Liveliness. Source: Glassnode

 Liveliness measures the movement of long-held tokens by calculating the ratio of coin days destroyed to the total coin days accumulated. When it drops, LTHs are moving their assets off exchanges and opting to hold.

Conversely, as with ETH, when the metric climbs, long-held tokens are being moved or sold, signaling profit-taking by long-term holders. This trend contributes to the downward pressure on ETH’s price and hints at the likelihood of further declines.

Ethereum Holds $3,875 Support—For Now

ETH’s 1% rebound appears fragile with ETF outflows mounting and long-term holders selling into the market. While the $3,875 support level has held for now, failure to attract renewed buying pressure could set the stage for further declines. 

In this scenario, the altcoin’s price could break below this key price floor and fall to $3,626. 

ETH Price Analysis. Source: TradingView

However, if today’s rally gains strength and demand rises, it could push ETH’s price toward $4,211.

Source: https://beincrypto.com/ethereums-price-recovery-faces-risk/

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