Ethereum faces mounting sell pressure as whales continue to dump ETH, and spot Ethereum ETFs report significant net outflows.
On February 26, there were $94.3 million in net outflows from US Ethereum spot ETFs, according to SoSoValue data. With $69.7 million, BlackRock was the largest outflow, followed by Fidelity with $18.3 million and Grayscale with $3 million. Net outflows have totaled $222 million in the last week.
Currently, ETH is trading at $2,340, down 5% from the previous day. CoinGlass reports that the total amount of 24-hour liquidations has been $127.93 million. Ethereum’s total value locked has dropped to $51.5 billion, the lowest level since November 2024, indicating weaker DeFi activity and liquidity.
Why Are Spot Ethereum ETFs Recording Outflows?
An increase in whale activity is increasing the pressure. On February 27, the blockchain analytics company Lookonchain found and reported two noteworthy transactions. Among these were the sale of 8,074 ETH for $19.63 million and the deposit of 10,000 ETH to Binance for $23.44 million. Large holders are likely selling their holdings.
Since former US President Donald Trump reaffirmed his plans to impose a 25% tariff on imports from the European Union, the sell-off has coincided with increased market turbulence, which has caused volatility in the cryptocurrency markets.
The recent $1.4 billion Bybit hack has exacerbated the unfavorable sentiment. Some analysts had anticipated that Bybit’s massive acquisition of ETH would increase Ethereum’s price despite the loss. Nonetheless, selling pressure has persisted in surpassing any optimistic anticipations.
Even though the outlook is currently bearish, Ethereum may find support from two noteworthy developments. Ethereum’s standing as a long-term investment asset could be improved if the Securities and Exchange Commission permits staking for Ethereum ETFs.
The eagerly awaited Pectra upgrade is scheduled to launch on April 8. The expected increases in network efficiency and scalability may attract new investors and developers, acting
