The recent decline of Ethereum (ETH) below $2,000 is no longer limited to the price chart. Capital flows, on-chain data and technical structures are now consistent with bearish momentum, supporting concerns that the sell-off could proceed further.
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With ETH falling below key support levels, new ETF outflows and changes in investor behavior are adding pressure at a time when confidence already appears fragile.
ETH's price trends to the downside on the daily chart. Source: ETHUSD on Tradingview
ETF outflows indicate institutional appetite is waning.
The Ethereum spot ETF recorded net outflows of $80.79 million on February 5, according to SoSoValue data.
Fidelity’s FETH accounted for most of the movement, with $55.78 million leaving the fund in a single session. FETH still maintains cumulative inflows of $2.51 billion, but rapid daily withdrawals have sparked renewed caution among investors.
Not all products are shutting down. Grayscale’s Ethereum Mini Trust (ETH) had the highest daily inflows of $7.05 million, followed by Invesco’s QETH with $3.53 million. However, these gains were not enough to offset widespread sales.
Total Ethereum spot ETF assets currently stand at $10.9 billion, accounting for approximately 4.83% of ETH market capitalization. The patchy flow picture suggests selective positioning rather than broad-based accumulation.
Ethereum price structure weakens as support levels collapse
Ethereum’s price action continues to move lower, with ETH recently trading below the $2,000 range after briefly falling to $1,750 earlier this week. Analysts tracking higher time frames point out that the bearish market structure remains intact and there are no bullish moves confirmed on the 4-hour chart.
Previous support around $2,125 has now turned into resistance, and traders are watching for a potential reaction in the liquidity area around $2,200 and $2,300. A sustained pullback above $2,345 is widely considered the minimum requirement to signal a trend change.
Until then, the rally is viewed as a corrective move within the broader downtrend.
Added context to on-chain signals and developer concerns
On-chain data shows clear differences between investor groups. Mid-cap holders reduced their exposure during the downturn, while large wallets increased their holdings. This suggests accumulation of long-term players amid weakness.
At the same time, exchange inflows, especially on Binance, have increased to levels last seen in 2022, which are often associated with distributions or relocations.
Beyond price, Ethereum co-founder Vitalik Buterin recently criticized the lack of innovation among copycat EVM chains, arguing that scaling progress without deeper technological differentiation risks stagnation.
Although these comments are not directly related to the market, they support broader concerns about direction and execution within the ecosystem.
ChatGPT, ETHUSD chart cover image by Tradingview
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