Ethereum’s ETF release streak continues to weigh on demand. Place $ETH ETFs saw an additional $168.2 million in weekly outflows, extending four straight weeks of withdrawals. As institutional demand weakened, Ethereum lost a source of liquidity that had previously absorbed supply during market downturns.
Thus, the price action deteriorated further. Ethereum [$ETH] fell to nearly $1,600 as sellers continued to demand overwhelming demand.
As the decline deepened, the daily RSI fell to 13.96, a level typically associated with capitulation rather than routine corrections. Additionally, this decline suggests that sellers continued to overwhelm available demand.
Although such extreme RSI readings often precede relief rallies, they do not guarantee a trend reversal.
Until ETF flows stabilize and buyers begin to absorb supply more aggressively, Ethereum could remain vulnerable despite signs of near-term exhaustion.
Whales pile up as liquidation risk rises
Ethereum’s decline has started to attract aggressive buying from large holders. A whale spent $55.8 million to acquire 35,723 $ETH almost $1,563 after selling 60,000 $ETH and 9,442 wstETH around $2,040.
Meanwhile, another investor borrowed $142 million in Tether. [USDT] from Aave [AAVE] and accumulated 87,680 $ETH at an average price of $1,620. This activity suggests that some large holders view current prices as attractive despite continued market weakness.
However, the leveraged position carries a health factor of 1.16 and risks a liquidation near $1,354, making Ethereum’s next move increasingly important in determining whether this belief proves correct.
What’s next for Ethereum?
The Ethereum sale did not happen in a vacuum.
As ETF investors have continued to withdraw capital from the market, on-chain data shows other participants are stepping in. Foreign exchange reserves remain close to their lowest level in several years, around 15 million. $ETHwhile large holders continue to withdraw coins and increase their positions during the decline.
However, not all of these requests are the same. Some buyers use borrowed capital to accumulate $ETH Through lending protocols such as Aave. This explains why buying interest persisted despite weeks of institutional outflows.
The market now faces another question. Whales appear willing to absorb supply, but leveraged demand is much less stable than one-time accumulation. Whether this purchase can offset the ETF sale remains one of the key forces that will shape Ethereum’s next step.
Final summary
- Ethereum [$ETH] remains stuck between persistent ETF outflows and increasing whale accumulation, leaving demand absorption as the market’s primary test.
- Buying Ethereum whales continues to support the market, but leveraged positions keep liquidation risks high near critical levels.
