Ethereum In The Spotlight: ETF Outflows Surge More Than 60% As Price Suffers Near $1,580
Ethereum remains under intense pressure as its price treads around $1,580, bogged down by massive outflows from U.S. spot Ether ETFs, which have had their total net assets drop more than 60% since December. The sharp drop underscores increasing risk-off sentiment among institutional investors, particularly in the face of wider market uncertainty in the wake of Trump’s tariffs. Despite the bearish context, Tron’s founder Justin Sun has reasserted his long-term support of owning Ethereum, indicating faith in the network in the long term. In the meantime, whale activity and large ETH deposits by Galaxy Digital onto exchanges indicate warning is still in effect even as technicals indicate oversold conditions that could possibly indicate a reversal if significant resistance levels are regained. KEY LOOKOUTS • US spot Ether ETFs have recorded a whopping 60% decrease in total net assets, which reflects increasing institutional risk aversion and ongoing selling pressure on Ethereum. • Regardless of the downtrend in the market, Tron founder Justin Sun publicly assured that he will not sell his ETH holdings, which reflects continuous support and cooperation with Ethereum developers. • Galaxy Digital and other major holders have transferred considerable amounts of ETH to exchanges — a possible signal of additional sell-side liquidity on the horizon. • ETH’s Relative Strength Index (RSI) is on the verge of entering oversold levels, with the Stochastic Oscillator oversold since February — indicating potential for a technical bounce if market sentiment changes. Ethereum is under immense pressure as its price languishes at near $1,580, bogged down by a precipitous 60% decline in aggregate net assets among U.S. spot Ether ETFs — an unmistakable indicator of dwindling institutional confidence. Though big investors such as Justin Sun have put the market at ease by assuring that they will not sell their ETH stakes, whale movements give a nervous outlook as Galaxy Digital has deposited more than $79 million in ETH into exchanges in recent days. On the technical side, metrics like the RSI and Stochastic Oscillator indicate Ethereum is approaching strongly oversold levels, suggesting the potential for a reversal if sentiment and ETF outflows stabilize. Ethereum is under selling pressure as ETF outflows exceed 60%, pulling prices close to $1,580. Although the price declined, Justin Sun assured that he will not sell his ETH position, which reflects long-term faith. Technical charts now suggest chances of oversold levels, hoping for a probable recovery. • Ethereum price lingers at $1,580 during ongoing market downtrend and intense selling pressure. • ETH ETF aggregate net assets have dropped more than 60% since December, showing aggressive institutional redemptions. • Justin Sun calms investors, affirming no intent to sell ETH amid poor price action and market volatility. • Galaxy Digital transferred more than $79 million in ETH to exchanges in the last five days, indicating possible sell-side pressure. • Trump’s tariffs have intensified fear in the markets, which is partly responsible for the $909 million net exit from ETH ETFs. • Technical chartists such as RSI and Stochastic Oscillator indicate ETH is oversold, which poses the risk of a reversal of price. • A breach above the resistance level of $2,000 could turn Ethereum bullish, but a breakdown can lead to deeper capitulation. Ethereum remains in the limelight of market focus as U.S. spot Ether ETFs experience a steep fall in total net assets, declining more than 60% from their December peaks. The steep outflows indicate changing investor sentiment and increasing wariness in the crypto space, particularly in the wake of broader economic policy shifts such as Trump’s tariffs. Even in the tough environment, industry heavyweights continue to express their long-term confidence in Ethereum’s ecosystem. ETHEREUM DAILY PRICE CHART CHART SOURCE: TradingView Especially noteworthy is Tron founder Justin Sun’s public assurance that his company has no intention of selling its ETH holdings, even while the wider market readjusts to recent turbulence. Sun reaffirmed ongoing cooperation with Ethereum developers, affirming the perception that Ethereum’s foundational technology and developer base remain robust in spite of short-term market challenges. In the background, big crypto companies such as Galaxy Digital have been busily transferring ETH between platforms, underlining continued strategic maneuvers by institutions. TECHNICAL ANALYSIS Ethereum has been stuck in a consistent downtrend since mid-December, trading inside a falling channel for more than four straight months — its longest such sequence since inception. Leading indicators are sending warning signs of impending selloff exhaustion, with the Relative Strength Index (RSI) approaching the oversold region and the Stochastic Oscillator being oversold since late February. In addition, the Moving Average Convergence Divergence (MACD) indicates diminishing bearish momentum, and two back-to-back receding histogram bars suggest selling pressure may lose speed. A clean breakout above the upper channel boundary and retaking the $2,000 level could turn Ethereum into a bullish position, while losing support may lead to more downside and further capitulation. FORECAST In spite of Ethereum’s long downtrend, technical indicators are now starting to indicate a potential change in momentum. The Relative Strength Index (RSI) is nearing oversold levels, which tends to indicate that a price bounce may be imminent if buying pressure resumes. If Ethereum can break above its falling channel and successfully retake the psychological $2,000 resistance level, it may initiate a trend reversal and pave the way for a bullish bounce. Also, any positive news regarding ETF staking approvals or relief on macroeconomic pressures would reinforce investor sentiment and support upward momentum. Conversely, Ethereum is still at risk of further declines if the existing negative momentum continues. ETF outflows, already reducing total net assets by more than 60%, reflect deep institutional wariness, and this may bear down further on prices if outflows continue. A breakdown below the channel’s support line would most probably increase selling pressure, propelling ETH to new local lows and causing further capitulation among retail and institutional investors alike. Whale activity, such as Galaxy Digital’s big ETH transfers to the exchanges, is also an early sign that further downside risk still hangs over.