Is Ethereum Taking a Downward Trend? Week of Withdrawals Creates Grim Outlook for Ethereum USD
Spot Ether ETFs listed in the US have just experienced five consecutive days of net outflows, increasing pressure on Ethereum-related funds and indicating a diminished risk appetite among smaller investors.
Farside data indicates that $248.4M was withdrawn from these products on Friday, bringing total weekly redemptions to $795.8 million. During this period, Ether declined by approximately -10%.
This marks the most extended decline since the week ending September 5, when the token was trading close to $4,300.
A significant question remains for the market: locking tokens. Traders are eager to find out whether US regulators will permit staking within Ether ETFs. On September 19, reports suggested Grayscale was on the verge of earning yield part of its substantial ETH holdings, seen as a positive indicator that the SEC might approve it.
BREAKING: Grayscale is preparing to stake their $ETH holdings. $ETHE $ETH
They’ve shifted over 40K $ETH in the previous hour as they position (1.5M $ETH) for staking rewards.
They are the first Ethereum ETF in the US Markets to do so. pic.twitter.com/vSOmr0vnHQ
— Emmett Gallic (@emmettgallic) September 18, 2025
The timing remains uncertain. However, sentiment is clear. “It’s indicative of capitulation as there has been considerable panic selling,” stated crypto analyst Bitbull said regarding the withdrawals.
$ETH ETFs just recorded its largest weekly outflow ever.
This signals capitulation as the levels of panic selling have been very high.
Do you believe $3,750 was the bottom for Ethereum? pic.twitter.com/DRjlSSOKJC
— BitBull (@AkaBull_) September 27, 2025
BTC products are also affected by the trend. Spot Bitcoin ETFs experienced $897.6M in net outflows during the same five-day period. BTC saw a decrease of -5.28% over the week and was trading around $109,551 at the time of writing.
ETF analyst James Seyffart mentioned on a podcast Thursday that Bitcoin ETFs “haven’t had an exceptionally strong performance over the past few months,” while acknowledging they still represent “the largest launch in history.”
LIVE NOW – The Crypto ETF Rush Hasn’t Even Started@JSeyff joins us to discuss the crypto ETF boom: what’s real, what’s next, and who’s actually making purchases.
We explore how spot Bitcoin and ETH ETFs have opened the floodgates, including how advisors, hedge funds, and even sovereign wealth funds… pic.twitter.com/JNAFGnr7d0
— Bankless (@BanklessHQ) September 25, 2025
Flow patterns may depend on the SEC’s decisions. An approval for staking could stabilize interest in Ether funds. Until then, price movements and ETF metrics will shape the trading market sentiment.
Could Institutional Demand Propel Ethereum Above $4,000?
As reported by Glassnode, the most substantial holders of Ethereum are entering a buying phase. Wallets holding 10,000 Ethereum or more, commonly referred to as mega whales, have increased at one of the most rapid rates in years.
In recent weeks, over 60 of these addresses have emerged, a speed not witnessed since early 2021.
This change coincided with ETH reclaiming the $4,000 level. It reflects restored confidence among institutions and long-term holders who typically buy when they recognize value.
Past cycles have shown that a higher percentage of coins in these large wallets correlates with accumulation periods that preceded significant price movements. These stakeholders generally encompass funds, custodial services, and wealthy investors.
Derivatives play a role as well. Ether futures positioning has increased alongside spot buying, suggesting that prominent players are expanding their exposure in different markets.
This influx may eventually attract retail investors but can also lead to sharper price fluctuations if positions change abruptly.
While it’s true that whales often take profits near crypto market peaks, the rapidity and magnitude of the recent additions resemble long-term strategies rather than short-term trades.
Currently, the data indicates that affluent buyers continue regarding Ethereum as a key asset as they approach known catalysts such as broader earning yield utilizations and any advancements in ETF developments.
CoinGlass data shows that ETH futures open interest is approaching $70 billion, levels similar to those observed near the peak in 2021.
The increase coincided with ETH’s surge past the $4,000 threshold, indicating fresh capital entering the crypto market via derivatives.
An uptick in open interest suggests that more traders are managing active contracts. While it doesn’t predict who will prevail, it indicates that a significant price movement could follow.
When positioning becomes congested, funding and liquidations become critical. If long positions dominate, a sudden downturn can escalate rapidly. Conversely, if shorts are excessively weighted, a quick squeeze might occur.
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ETH Price Prediction: Can Ethereum Break Above the $4,300-$4,400 Barrier level Level?
Crypto holder Merlijn states that ETH is testing a longstanding price ceiling near the $4,300-$4,400 range. His chart indicates persistent failures at this level since 2021.
$ETH IS PUSHING AGAINST RESISTANCE.
One decisive move, and price discovery will ensue.
Targets: $10K+ and beyond.The uptrend won’t just be significant.
It will be historic.Only caveat? A steely resolve is necessary to endure the FUD. pic.twitter.com/rBvJMVSn85
— Merlijn The Investor (@MerlijnTrader) September 27, 2025
He suggests that a firm daily close above this level would propel ETH into price discovery, paving the way for potentially much higher levels.
He even describes the prospective surge as “legendary,” viewing it as a structural breakthrough rather than a gradual climb.
The risk includes distractions surrounding the breakout: sentiment can turn swiftly, and attempts to breach price ceiling have previously failed. The framework is straightforward; hodl below and consolidate; close above with strength and momentum could expand rapidly.
Analyst Ali Martinez highlights three key support levels to monitor on the downside: $3,515, $3,020, and $2,772.
Three support levels to observe for ETH $ETH: $3,515, $3,020, and $2,772. pic.twitter.com/M6UiTUGvjz
— Ali (@ali_charts) September 27, 2025
His analysis is based on realized price distribution, highlighting where numerous addresses last acquired Ethereum.
These clusters frequently serve as speed bumps for declines. The $3,020 region is noteworthy due to substantial prior purchases there.
Maintaining that shelf would price floor the trend positively and mitigate downside after sharp ups and downs. Losing it could lead the crypto market to reassess deeper price floor levels as late long positions unwind.
In conclusion: respect the $3,515 pullback level, treat $3,020 as the pivot point, and consider $2,772 as a safety net in an adverse scenario.
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The post Is Ethereum Heading South? Week of Outflows Paint Bleak Picture for Ethereum USD appeared first on 99Bitcoins.
