Even as Ethereum (ETH) Price Continues to Face Downward Pressure

Even as Ethereum's (ETH) price continues to face downward pressure and recent trends have some observers doubting the asset's potential

The price of Ethereum (ETH) has been struggling recently, but that isn’t stopping some investors from buying high and hoping for even higher prices later.

During the past week, 1.2 billion worth of ETH was taken off of exchanges, the highest amount seen since December of last year. This kind of movement is traditionally seen as a signal that investors expect an asset’s price to appreciate.

Strategic Buying Opportunity or Short-Term Risk?

The world’s second-largest cryptocurrency has seen plenty of consolidation in recent weeks as traders and investors ponder its next move. While the broader market sentiment has been pessimistic, the $1.8 billion outflow suggests that a large portion of Ethereum holders are not looking to sell at current prices. Instead, they are moving their Ethereum off exchanges and holding long-term. This behavorial pattern oftentimes signifies confidence in Ethereum’s long-term prospects, as investors prefer to store their tokens in private wallets rather than leave them exposed to exchange risks.

At such a large sum, the holders of the cryptocurrency believe that the current market conditions present a buying opportunity. With Ethereum’s price still far from its previous all-time highs, some investors likely view this as a strategic entry point. This could be especially true for those who expect a rebound in the near future. Of course, this trend doesn’t mean that the holders aren’t. A broader analysis of market conditions could just as easily lead one to view this as a premature entry given the downward trend in the broader market.

Despite the long-term positivity surrounding Ethereum, price weakness and market uncertainty recently triggered short-term volatility. In the past 24 hours, for instance, $230 million worth of long positions in ETH were liquidated. That’s a 4.18% drop in the leverage taken on long positions over just 24 hours. Of course, not all traders use leverage, and plenty of traders have raked in profits recently from simply shorting. But using leverage makes the kind of market ETH is currently seeing even more unpredictable.

Over $230 million in #Ethereum $ETH long positions were liquidated yesterday, shaking out overleveraged traders!

— Ali (@ali_charts) March 10, 2025

This time last year, the price of Bitcoin was around $40,000, having already fallen from its 2021 highs.

The chart of Ethereum is showing one of the most interesting technical patterns today: a descending triangle, which is usually a signal for traders that the coin is about to break out of its current period of consolidation. Even in times like these, when half the crypto world is selling and the other half is buying, the price of Ethereum seems to be consolidating. Whatever direction it ultimately breaks out in, there will be strong price movement. If it breaks upward, it could lead to an increase in price of as much as 18%.

If the price of Ethereum manages to break through key resistance levels, then a major recovery could be around the corner. That’s the way many investors see it right now, with their eyes set on not-too-distant upside price targets. But if Ethereum instead keeps following this downward path, then there’s the real potential for not-too-distant price targets that are heading much lower. What’s at risk here and what could be in store for the price of Ethereum in the near term?

The market is unstable, but the descending triangle pattern usually shows that the market is waiting for a catalyst to send it in a more clear-cut direction. As it emerges from this lull, Ethereum could make one of two major moves: it could push upward and leave behind a bunch of resistances that have been a hassle for it and continue to be a price surge, a price pump (if you will), which would also be a nice Christmas present for a lot of people who hold Ethereum. Or it could collapse downward.

Outflows from Ethereum ETFs and Institutional Sentiment

The world’s second-largest cryptocurrency is also seeing outflows from the ETF that tracks it. According to the latest data from blockchain analytics firm Wu Blockchain, from March 3 to March 7, Ethereum spot ETF had a net outflow of $120 million. This is a clear sign that the institutional side of the investment spectrum is not comfortable with where Ethereum is currently trading. They are taking actions that highlight their conservatism and their inability to predict where Ethereum is headed next.

Last week (March 3 to March 7, ET), Bitcoin spot ETF had a net outflow of US$799 million; Fidelity ETF FBTC had a net outflow of US$201 million; Ethereum spot ETF had a net outflow of US$120 million.https://t.co/YanotfbWiJ— Wu Blockchain (@WuBlockchain) March 10, 2025

The drains from Ethereum ETFs show that while long-term holders are