Ether (ETH) plunged 28% in a week to $2,110, underperforming the broader crypto market. The drop triggered over $2 billion in leveraged trader liquidations and forced spot Ethereum ETF outflows of $447 million as demand cooled. Network activity also declined sharply, with decentralized exchange volumes on Ethereum falling 47% since last October.
Ether fell to $2,110 on Tuesday amid a broad market retreat. Investors moved into cash and government bonds as tech stocks declined and concerns grew over inflated valuations.
The ETH perpetual futures annualized funding rate turned negative, a rare event showing sellers paying fees to hold positions. This shift reflects a profound lack of confidence from buyers in the market.
Ether’s decline was more severe than other major cryptocurrencies over the past month. Data shows Bitcoin fell 17%, while BNB dropped 14% and Tron declined 4% in the same period.
Institutional demand cooled as US-listed Ethereum spot ETFs saw significant net outflows. Traders remain wary of potential sell pressure from the $14.4 billion held in these aggregate funds.
Ethereum network activity dropped substantially as interest in decentralized applications waned. Trading volumes on Ethereum decentralized exchanges fell to $52.8 billion in January from $98.9 billion in October 2025.
This 47% decline in activity reduces incentives for holders by limiting the network’s token burn mechanism. Typically, high demand for blockchain processing triggers this supply-shrinking feature.
Addresses linked to Ethereum co-founder Vitalik Buterin sold approximately $2.3 million in ETH recently. Buterin stated that a total of 16,384 ETH from his personal holdings will be gradually deployed over the coming years for donations.
The current market conditions show continued weak onchain metrics and cautious sentiment. The lack of demand for bullish ETH perpetual futures should not be viewed as a signal for a quick reversal.
