Ethereum Price Drops 10% Amid $82.47M ETF Outflows
3min read Ethereum has been under significant pressure recently, with U.S.-based ETFs linked to it experiencing outflows for seven consecutive weeks. This week alone, nine Ethereum ETFs saw a total outflow of $82.47 million, contributing to a 10% drop in ETH’s price over the past week. The sustained withdrawal of funds has raised concerns about a potential larger crash in the coming week.
Ask Aime: What could be the reason for the sustained outflows of funds from U.S.-based ETFs linked to Ethereum?
On April 11, Ethereum spot ETFs recorded a total outflow of $29.2 million, marking the fourth consecutive day of negative movement. Grayscale’s fund (ETHE) led the outflow with $26.1 million withdrawn, followed by Bitwise (ETHW) with $3.1 million. This continuous drop in support from major investors is driving further selling pressure, causing Ethereum’s price to decline.
In addition to the financial outflows, Ethereum’s network activity has also been slowing down. The number of unique active wallets on Ethereum has decreased by over 33% in the past month. In contrast, Solana saw a 16% decrease in activity, while Tron experienced a 16% increase. This reduction in network activity suggests a waning interest in Ethereum’s ecosystem.
Adding to the concerns, Standard Chartered Bank has reduced its year-end price target for ETH by 60%, now expecting Ethereum to end the year around $4,000. The bank cited concerns over Ethereum’s scalability and increasing competition as reasons for the downgrade. They believe that Ethereum has become overly reliant on Layer 2 networks, potentially losing its competitive edge.
Ethereum’s price has dropped by 10% in the past week, and the situation could worsen if demand continues to fall. Without strong support from institutional investors, Ethereum may struggle to recover in the short term. Current charts indicate a bearish trend, with sellers maintaining control. If the price falls below $1,500, it could drop further to the $1,300 or $1,200 range. Conversely, if ETH holds above $1,700, there is a chance for a short-term recovery, potentially rising to $1,900 or $2,000 in the coming days.
Despite a recent 21% surge, Ethereum continues to struggle below the $1,600 mark. This price movement has sparked both optimism and skepticism within the crypto community. Some investors hope this rebound signals a bullish reversal, while others are cautious, fearing a classic bull trap. On-chain data shows that investors have been accumulating ETH, particularly around the $1,460–$1,470 zone, with over 380,000 ETH bought in this region, followed by another 453,000 ETH within just five days. This accumulation typically indicates investor confidence and the potential start of a new bullish trend. However, the source of this demand is crucial. If it comes mainly from the spot market, it suggests long-term belief in ETH’s growth. Conversely, if leveraged traders are behind it, the situation could become risky, as leveraged positions can easily unwind in risk-off environments, leading to a price tumble.
The Fear and Greed Index for Ethereum has shifted toward “greed,” currently sitting at 55, indicating a significant psychological swing from recent weeks when fear dominated sentiment. This shift suggests that investors are beginning to feel optimistic again. However, the Net Unrealized Profit/Loss (NUPL) metric, which tracks the ratio of investors sitting on unrealized gains, remains deep in the “capitulation” zone. This implies that despite the price rebound, most holders are still underwater and potentially ready to sell at the first sign of weakness. The mixed signals from exchange activity further complicate the situation. Around 100,000 ETH flowed into spot exchanges last week, pointing to potential sell pressure. In contrast, 60,000 ETH exited the derivatives market, signaling growing interest in long positions. Funding rates are also trending positive, reinforcing the idea that more traders are betting on Ethereum’s continued rise. However, if the spot market does not back up this optimism, a sharp pullback could catch long traders off-guard.
Ethereum's price is currently testing key support around the $1,500 level after reaching a mid-week high of $1,682. The digital asset has dropped roughly 4%, sitting at $1,550. This price movement highlights the ongoing volatility and uncertainty in the market. While there are multiple signs that ETH may be close to bottoming out, some indicators suggest that there could be continued weakness for the digital asset. The lack of institutional capital and the weakening utility demand, coupled with rising competition, have contributed to Ethereum's price hitting a 5-year low against Bitcoin. Investors have lost interest amid these challenges, further complicating the outlook for Ethereum.
In conclusion, Ethereum's recent price movements have left the market at a crossroads. While the 11% rebound is a welcome change from the bearish stretch that dominated early 2025, it is still too early to declare a full-on market recovery. The mix of optimism and underlying uncertainty suggests that investors should proceed with caution. Whether this is a true turning point or just a temporary bounce depends on how investors, especially in the spot market, respond in the coming days. For now, the message is clear: be hopeful, but stay cautious.
