Ethereum’s price has fallen sharply from recent highs, dropping over 16% in ten days to test the crucial $2,000 support level. Analysts attribute the decline to broader market conditions and a sudden shift to outflows from spot Ethereum ETFs, which have seen over $440 million leave in eight consecutive days. Meanwhile, data suggests large-scale investors, or “whales,” are absorbing the selling pressure from retail traders.
Ethereum has joined a market-wide correction, declining from $2,200 to a three-week low of $1,970. The asset has recovered slightly, but the $2,000 level is now seen as critical for near-term price direction.
The decline follows a peak near $2,400 about ten days ago. Broader factors like the U.S. Federal Reserve’s stance and geopolitical tensions are considered contributing causes.
Investor behavior in spot Ethereum ETFs has changed dramatically. After six straight days of net inflows ending March 17, the funds have experienced eight consecutive days of withdrawals.
This shift has resulted in over $440 million being pulled from the products. The cumulative net inflows have consequently dropped to approximately $11.5 billion.
Analyst CW noted that retail investors are selling ETH “out of fear.” However, the analyst stated that “whales are absorbing the selling volume” and that buy orders remain very strong.
Fellow analyst Ted Pillows emphasized the importance of the $2,000 price level. He noted that ETH could push toward $2,150 if it reclaims it decisively, but it could dump to “new lows” if it loses it.
In a separate assessment, Pillows suggested Ethereum might rebound to a liquidity cluster around $2,100. The analyst then expects the asset to resume its downtrend afterward.
