ether of ethereum Ethereum$3,197.03 A sharp decline from Thursday to Friday accelerated the market-wide decline in cryptocurrencies as Bitcoin fell below the $100,000 level, dropping more than 10% from high to low.
The second-largest cryptocurrency fell from $3,565 early Thursday to $3,060 by early Friday, erasing all of last week’s rebound. It has recently stabilized below $3,200, but is still down about 8% in the past 24 hours.
The move coincided with a broader market decline in the U.S. market, with stocks and bonds also falling in tandem with cryptocurrencies. The just-ended US government shutdown weighed on liquidity conditions. Adding to the pressure is the growing likelihood that the Fed will leave interest rates unchanged at its December meeting.
U.S.-listed spot ether ETFs have seen net outflows of $1.4 billion since the Federal Reserve in late October, when Chairman Jerome Powell threw cold water on a near-universally expected December interest rate cut, according to data from Pharcyde Investors. Thursday’s outflow of about $260 million was the largest single-day outflow of the month.
In addition, long-term holders are also heading for the exit. According to Glassnode blockchain data, long-term holders of 3 to 10 years are accelerating sales to around 45,000 ETH (approximately $140 million at current prices) each day on a 90-day moving average, the highest pace of circulation since February 2021.
Selling by long-term Ether holders is accelerating. (glass node)
Blockchain data also suggests deteriorating fundamentals. Monthly active addresses on the network fell to 8.2 million from more than 9 million in September, while transaction fees over the past month fell 42% to just $27 million, according to Token Terminal data.
Main technical levels to focus on
According to CoinDesk Research’s technical analysis model, ETH has broken the key support level at $3,325 and established a clear bearish trend to new consecutive highs.
- Support/Resistance: Primary support is at $3,080, with secondary floors at $3,050 and $2,880. Key resistance levels form at $3,330 (previous support), $3,500 (main pivot), and $3,650 (descending channel high).
- Volume Analysis: Sales peaked at 641,103 during a $3,325 breakdown, 71% above the 24-hour baseline. Trading volume subsequently declined to 80% of its 7-day average, indicating potential depletion.
- Chart Pattern: ETH has broken the April ascending channel, creating a bearish structure with lower highs. The consolidation range between $3,077 and $3,146 suggests a possible base formation.
- Objectives and Risk/Reward: A breakout of the $3,050 support exposes the downside of $2,880, but bullish momentum requires a retake of $3,563. A decisive rise above $3,500 targets $3,650 to $3,800.
Disclaimer: Portions of this article were generated using AI tools and reviewed by our editorial team to ensure accuracy and compliance with standards. For more information, please see CoinDesk’s complete AI policy.
