Ethereum slipped below the $2,500 mark on Friday, extending its losing streak to a third consecutive session as a combination of institutional outflows, rising exchange balances, and broader macroeconomic pressures weighed on investor sentiment. The cryptocurrency traded around $2,490 after briefly touching $2,424 on Thursday, marking a near 3% decline for the day.
The downward move came alongside elevated oil prices and a spike in US Treasury yields, which reached a 24-year high of 5.35% for the 10-year note before easing. Higher yields make interest-bearing assets more attractive, potentially diverting capital away from riskier investments like cryptocurrencies. The Federal Reserve's September meeting minutes, released Wednesday, indicated that officials expect another rate hike before year-end, though the timing remains unspecified.
Institutional demand has been notably weak, with US spot Ethereum ETFs recording net withdrawals of $160.7 million and $72.54 million on Wednesday and Thursday, respectively. This marks eight consecutive sessions of net outflows, totaling approximately $624 million, with no positive daily flows this week. The sustained outflows suggest reduced appetite through regulated investment products at a time when ETH is already facing selling pressure elsewhere.
On-chain data from CryptoQuant shows that Ethereum balances on exchanges have increased by roughly 132,000 ETH since Monday and about 233,000 ETH over the past two weeks. Rising exchange reserves can indicate that more coins are available for sale, although deposits do not necessarily confirm that those assets have been sold. Wallet balance data also points to distribution across several holder groups, with addresses holding between 10,000 and 100,000 ETH reducing their combined balances by approximately 151,000 ETH over two weeks. The cohorts holding 1,000–10,000 ETH and 100–1,000 ETH collectively reduced their balances by roughly 276,000 ETH.
The market saw significant liquidation activity, with Ethereum recording $344.85 million in futures liquidations over the past 24 hours, leading the crypto market, according to CoinGlass. Long positions accounted for $283.5 million, while short liquidations totaled $61.32 million. The concentration of losses among longs shows that traders positioned for higher prices bore most of the impact as ETH's decline accelerated.
Technical outlook: Key levels to watch
Ethereum has fallen below its 20-day and 50-day exponential moving averages (EMAs) at $2,631 and $2,502, leaving a neutral-to-bearish near-term outlook. The next major support zone lies between the horizontal level at $2,355 and the 100-day EMA at $2,338. A daily close beneath that cluster could bring $2,204 into view, followed by $1,972.
Momentum indicators remain weak, with the 14-day Relative Strength Index near 40 and the Stochastic oscillator around 18, signaling oversold conditions. These readings could slow the decline but do not guarantee a rebound. A recovery would first encounter the 50-day EMA near $2,502, followed by horizontal resistance at $2,548. Above that, the $2,631-$2,636 area forms a broader resistance zone, with $2,781 the next major hurdle.
Market participants are closely watching whether bulls can defend the $2,355 support level, as a break below could trigger further downside. The combination of institutional outflows, rising exchange balances, and a hawkish Fed outlook suggests that Ethereum may face continued pressure in the near term.
This article is for informational purposes only and does not constitute financial advice.
