Ethereum is under new sell pressure after a high-profile crypto trader sold his ETH assets to buy decentralized finance (DeFi) tokens. This action is happening at a time when ETH is trading flat around the psychological $3,000 price level. Hayes envisioned DeFi tokens as the next possible outperformer in case risk appetite remains high. In contrast, institutional Ethereum exposure is currently developing quickly as demonstrated by the recent BlackRock staked Ethereum ETF filing.
According to on-chain analytics, Hayes sent an approximately $2 million worth of ETH to crypto exchanges. This shows active movement of funds and not a change in custody. The price movement for Ethereum is also a reflection of this increased uncertainty. ETH has been unable to regain its momentum, having been rejected at important resistance levels on several occasions.
The $3,000 zone has turned out to be a zone of consolidation. But if it does not hold the support, it may lead to a retest of the low demand areas around $2,700 to $2,800. Spot Ethereum ETFs recorded massive outflows in the week ending December 15. Withdrawals from BlackRock’s ETHA were the largest, at about $467 million.
Redemptions were reported by other major issuers too. Ethereum ETF net flows turn negative as ETH price weakens amid rising institutional outflows. Rising Ethereum ETF outflows as ETH struggles to hold key support levels. Asset manager Bitwise is still expecting Ethereum to reach a new high in 2026.
Outflows from ETFs are important in that they negatively impact the liquidity of the buy side. Price can drop below key support levels when institutions continue to sell their tokens.
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