Ethereum Plunges Toward $2,800 as Major Holders Exit and ETF Redemptions Accelerate

Ethereum is facing intense downward pressure following a significant market correction on December 16. The cryptocurrency has slipped below the critical $3,000 threshold, with current trading activity reflecting broader bearish momentum across the digital asset landscape. Technical analysts are now eyeing lower support zones, with $2,800 emerging as a key level to monitor in the near term.

Technical Breakdown and Support Level Analysis

The recent price action has revealed troubling technical weakness in Ethereum’s chart structure. According to prominent market observer Ted Pillows, ETH has entered a vulnerable zone where traditional support levels have evaporated. The loss of the $3,000 mark represents a significant technical breakdown, signaling potential for extended declines unless the asset can stage a recovery.

Pillows cautioned that failure to reclaim $3,000 could trigger a cascade toward the $2,800 region and potentially lower levels. The analyst emphasized that Ethereum is currently trading in a support vacuum, leaving it exposed to further selling pressure without defined buy zones.

Crypto Patel offered additional technical perspective, noting that Ethereum encountered resistance near the $3,400 fair value gap before declining to around $2,900. According to this analyst’s assessment, the $2,600 level represents the most critical support barrier. A breakdown below this threshold could unleash selling pressure targeting the $2,000 region.

Both analysts maintain a bearish bias for near-term price action. However, Patel tempered his outlook by noting that long-term fundamentals remain constructive. He indicated plans to accumulate Ethereum on spot market weakness, with a multi-year price target ranging between $10,000 and $15,000.

Whale Activity and ETF Capital Flows Intensify Selling

On-chain monitoring has revealed substantial position liquidation from large Ethereum holders. Market data indicated that two major whale addresses offloaded approximately $41.02 million in ETH during the December 16 trading session. This coordinated selling activity from institutional-sized positions adds credibility to the bearish technical narrative.

The whale exodus coincides with significant capital outflows from spot Ethereum exchange-traded funds. On December 15, Ethereum ETFs experienced net redemptions totaling $234 million, reflecting investor hesitation toward the largest altcoin. This dual pressure from both on-chain whales and traditional finance vehicles underscores weakening institutional confidence.

BlackRock’s Ethereum ETF products led the outflow activity, with the firm’s flagship spot ETH offering registering net redemptions of 47,463 ETH (approximately $139.26 million). Notably, none of the major ETF issuers recorded positive inflows during this period, indicating uniform redemption sentiment across the market.

Following the redemption activity, BlackRock transferred 47,463 ETH worth approximately $140 million to Coinbase Prime, suggesting the asset manager is repositioning holdings in response to market conditions. This institutional-scale movement reinforces the significance of current selling pressure.

Current Market Conditions and Price Level Observations

With Ethereum trading in the $2,900-$3,000 range, the asset faces a critical inflection point. The combination of technical deterioration, whale position unwinding, and ETF redemptions has created a multi-layered selling dynamic that threatens further downside extension.

Market participants should closely monitor whether Ethereum can stabilize above $2,800, as a sustained break below this level would confirm the bearish technical thesis and potentially accelerate selling toward the $2,600 support zone. Until such time, the dominant trend appears corrective, with limited evidence of institutional buying enthusiasm.