Ethereum and Bitcoin in a tug of war? Technical indicators suggest a possible change in the scenario

Technicals Hint at a Trend Reversal

When we look at the market reality, both Bitcoin and Ethereum are at an interesting juncture. The RSI indicator for both assets has remained below the 50 level during recent observations, which is traditionally interpreted as a short-term bearish advantage. However, both BTC and ETH have shown a tendency to rise in this indicator, potentially indicating early signs of bullish divergence. In practice, this means that the possibility of reversing the current market sentiment should not be entirely dismissed. At the time of observation, Bitcoin was hovering around $91,990 (up 1.39% over the day), while Ethereum was at $3,160 with a 2.06% increase.

Institutional Portfolio Drain Continues

The real story of December has been the massive withdrawals from digital asset tracking ETFs. Ethereum experienced consistent outflows from the second half of the month, with ETFs losing a total of $853.9 million in just two weeks. Particularly surprising was the behavior of ETHA managed by BlackRock, which contrary to expectations, was in the outflow phase – signaling that even the largest institutions decided to withdraw before the end of the calendar year.

Bitcoin felt this trend even more intensely. Since December 11, the outflow from related ETFs reached $1.538 billion. Although there were individual periods of slight inflows (December 11: $49.1 million, and December 17: $457.3 million), the overall trajectory suggests systematic withdrawal by major players.

Support Levels – Where the Money Really Moves

Despite destructive flows from ETFs, Ethereum managed to stay above the $2,900 barrier. This raises the question: who is absorbing this selling? The answer points to retail investors or significant whales operating directly on-chain, who may be betting on further growth. The $2,500 level remains a key observation point – breaking below it would be a sign of a significant deterioration in market sentiment.

Diversification: Ripple’s Lesson for the Entire Sector

While Ethereum and Bitcoin are struggling with institutional capital withdrawals, Ripple (XRP) stands out with a completely different pattern. The XRP fund shows consistent daily inflows, and its net assets have surpassed the $1.16 billion mark. This ongoing demand suggests that institutions are showing noticeably stronger confidence in XRP’s regulatory prospects and its long-term market potential.

Summary: Reading Between the Lines

• The outflow of nearly a billion dollars from Ethereum ETFs has not led to a price collapse – indicating that buyers outside of institutions remain active
• Bitcoin is losing institutional appetite faster ($1.5 billion), which may suggest broader institutional concerns about the entire asset class
• Technical recovery of RSI indicators could be the first sign of bulls breaking through for the first time in over half a year