Ethereum (ETH-USD) sank on Friday in a sudden reversal that wiped out last week’s rebound and pushed the market back into risk-off mode. The second-largest crypto fell from Thursday’s peak of $3,565 to a session low of $3,060 and later hovered just under $3,200, still down roughly 8% over the past day.
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The retreat followed a broad slump across U.S. risk assets after traders walked back expectations for December rate cuts. Bitcoin fell below $100,000 and dragged the rest of the market into deeper losses.
ETF Outflows Add Pressure
ETF flows continued to lean sharply negative. U.S. spot ether ETFs have shed more than $1.4 billion since late October. Thursday delivered nearly $260 million in outflows, which marked the biggest single-day number in a month.
Investors appear to be tightening their exposure after the Federal Reserve signaled it may keep rates steady through year-end. Liquidity across markets remained strained after the government shutdown ended and bond markets weakened.
Long-Term Ether Holders Increase Selling
Long-term holders accelerated distribution at a pace not seen since 2021. Glassnode reported that wallets holding ETH for three to ten years sold about 45,000 ETH per day on a 90-day moving average. That represents roughly $140 million daily at current prices.
Monthly active addresses slipped to 8.2 million from more than 9 million in September. Network fees declined as well, falling 42% to $27 million over the past month. The data shows weakening usage during a period when prices typically need strong fundamentals to sustain momentum.
Key Levels Break as Trend Turns Bearish
ETH lost a critical support zone at $3,325 and confirmed a string of lower highs. Technical signals now point to a bearish structure.
Support sits near $3,080 and then $3,050. A deeper slide exposes the $2,880 area. Resistance begins at $3,330, then $3,500, followed by $3,650 at the top of the descending channel.
Volume spiked during Thursday’s breakdown, reaching 641,103 ETH traded. That was 71% above the 24-hour average. Activity faded afterward, suggesting early exhaustion but no firm reversal.
Short-term consolidation has formed between $3,077 and $3,146. Bulls need to reclaim $3,563 to regain upward momentum. A sustained move above $3,500 would add confidence and open the door to $3,650 and $3,800.
At the time of writing, Ether is sitting at $3,186.54.
