Ethereum News Update: BlackRock's ETH Sell-Off Triggers Downward Trend as $2B Exits ETFs

Ethereum (ETH-USD) is under increasing strain as the crypto sector contends with significant institutional sell-offs and declining investor sentiment. Recent figures indicate that crypto investment products saw $2 billion in outflows last week, with Ethereum-focused ETFs shedding

- as reported by CoinShares. This is the third week in a row of outflows, deepening worries about a sustained bearish phase. At the same time, BlackRock’s heightened on-chain transactions have fueled speculation, as the asset management giant transferred to Prime, in addition to a single $467.16 million BTC deposit. Market observers believe these actions point to deliberate reductions in crypto exposure rather than standard ETF portfolio adjustments, stoking concerns about further price drops.

Technical analysis offers a mixed outlook for

. Although the coin has managed to stay above $3,000 recently, major moving averages and momentum indicators reveal underlying weakness. have formed what’s known as a “Death Cross,” which typically signals a bearish market. The daily RSI is also close to oversold at 35, but a sustained move above $3,200 is needed to confirm any short-term recovery. that if buyers cannot defend this level, Ethereum may revisit support at $2,880 or even $2,500.

Broader economic uncertainty and aggressive moves by large holders are adding to the selling pressure.

to “uncertainty around monetary policy and significant selling by crypto whales,” highlighting that digital asset ETPs have seen $73 billion in AUM evaporate since their October highs. — totaling $642 million in BTC and — have unsettled retail traders, with some viewing these as panic-driven exits. This is reflected in ETF statistics, where from $26.8 billion in early October to $19.6 billion.

Despite the negative sentiment, a few analysts believe stabilization is possible.

at $3,444 could set the stage for a move toward the 50-day SMA at $3,871, potentially marking the end of the current correction. However, this outcome depends on renewed institutional interest and improvements in the macroeconomic environment. , as open interest in derivatives and continued Ethereum ETF outflows highlight the market’s vulnerability.

The direction of the wider crypto market may also depend on BlackRock’s upcoming actions. Since mid-2025, the company has not made major crypto purchases, leading to a slowdown in accumulation, while

. Should institutional players regain trust, Ethereum might find support near $2,800, but until then, both technical and on-chain signals point to more downside risk.

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