Here’s Why The Ethereum Price Is Crashing Again, Can It Breach $3,000?
Overview
The Ethereum price is experiencing a significant downturn, deepening its bearish trend over the past week. Factors contributing to this decline include weakening momentum, substantial ETF outflows, and increased selling from long-term holders, raising concerns about a potential deeper correction.
Current Situation
Ethereum has slipped below both its 7-day and 30-day moving averages, confirming a shift towards bearish momentum. Recent data indicates that Ethereum has experienced a one-week decline, with the price failing to regain its short-term trendline at any point during the sell-off. The technical deterioration is evident as both moving averages continue to curve downward, reflecting a weakened market structure.
This decline coincides with one of the heaviest redemption periods for Ethereum ETFs on record. Recent data reveals that spot Ethereum ETFs have seen over $1.4 billion in net outflows since early November, indicating a significant shift in institutional interest and demand.
The combination of persistent selling pressure from long-term holders and reduced ETF demand has created a feedback loop, causing Ethereum’s price to drop each time it fails to maintain price support levels.
Long-Term Holders and Market Dynamics
On-chain flow data suggests that long-term Ethereum holders, defined as wallets that have held their assets for three to ten years, are now selling at their fastest rate since 2021. This group typically remains inactive during most market phases, so their recent selling activity has generated a strong supply wave that exchanges are having difficulty absorbing.
However, the market dynamics are not entirely negative. Some large whale wallets have started to accumulate Ethereum during this downturn, purchasing hundreds of thousands of ETH valued at over $1 billion. Despite this accumulation, it has not been sufficient to counterbalance the broader selling pressure from long-term holders or the outflows from ETFs, leading Ethereum to remain in a downward trajectory.
Currently, Ethereum is trading around a specific price level, with its intraday low having reached a notable threshold. This proximity to the support zone raises concerns about the potential for further declines if selling pressure persists.
Impact on the crypto market
- The Ethereum price decline reflects a broader bearish sentiment in the crypto market.
- Significant ETF outflows indicate a shift in institutional interest away from Ethereum.
- Increased selling from long-term holders may signal a loss of confidence among seasoned investors.
- Whale accumulation suggests that some investors see potential value in the current price levels, though it is not enough to offset overall selling pressure.
- The current price action could influence market participants’ sentiment and trading strategies in the near term.
Updated: 11/17/2025, 2:24:52 PM
