Ethereum’s ether
The second largest cryptocurrency tumbled from $3,565 earlier on Thursday to $3,060 by early Friday, erasing all of past week’s rebound. It recently stabilized just below $3,200, still down roughly 8% over the past 24 hours.
The move coincided with broad-market selloff on U.S. markets with stocks and bonds falling in tandem with cryptos. The U.S. government shutdown, which has just ended, weighed on liquidity conditions. Also adding to the pressure is the increasing probability of the Federal Reserve leaving rates unchanged during the December meeting.
Since the Federal Reserve’s late October meeting, when chairman Jerome Powell threw cold water on near-universally expected December rate cuts, U.S.-listed spot ether ETFs have seen $1.4 billion in net outflows, Farside Investors data shows. Thursday’s nearly $260 million outflow was the biggest single-day bleed in a month.
On top of that, long-term holders are also heading towards the exit door. Glassnode’s blockchain data showed that long-term holders spanning 3-10 years accelerated selling to approximately 45,000 ETH (around $140 million at current prices) daily on a 90-day moving average, the highest distribution pace since February 2021.
Blockchain data also suggest deteriorating fundamentals. Monthly active addresses on the network have fallen to 8.2 million, down from over 9 million in September, while transaction fees over the past month collapsed by 42% to just $27 million, Token Terminal data shows.
Key technical levels to watch
ETH shattered a critical support level at $3,325, establishing a clear bearish trend with consecutive lower highs, CoinDesk Research’s technical analysis model suggested.
- Support/Resistance: Primary support sits at $3,080 with secondary floors at $3,050 and $2,880. Key resistance forms at $3,330 (former support), $3,500 (main pivot), and $3,650 (descending channel highs).
- Volume Analysis: Selling peaked at 641,103 during the $3,325 breakdown—71% above 24-hour norms. Subsequent volume dropped to 80% of 7-day averages, indicating potential exhaustion.
- Chart Patterns: ETH broke its April ascending channel, creating a bearish structure with lower highs. The $3,077-$3,146 consolidation range suggests possible base formation.
- Targets & Risk/Reward: Breaking $3,050 support exposes $2,880 downside, while reclaiming $3,563 is needed for bullish momentum. A decisive push above $3,500 targets $3,650-$3,800.
Disclaimer: Parts of this article were generated with the assistance of AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk’s full AI Policy.