Institutional capital flows and weakening market momentum are converging at a delicate moment for Ethereum (ETH), putting the second-largest cryptocurrency at a potential tipping point.
A large portfolio adjustment by the Harvard University Endowment, combined with falling prices and changing on-chain signals, has deepened the debate over whether the Ethereum price is nearing bottom or preparing for another decline.
Harvard Management Company has reduced its exposure to its Bitcoin exchange-traded fund, launching its first allocation to an Ethereum ETF, according to a recent regulatory filing. This move comes as ETH is trading below the psychological $2,000 level. This price range is increasingly acting as resistance rather than support.
ETH's price trends to the downside on the daily chart. Source: ETHUSD on Tradingview
Harvard’s Crypto Rebalancing Signals Institutional Rebalancing
During the fourth quarter of 2025, Harvard reduced its stake in BlackRock’s Bitcoin ETF by approximately 21%, reducing its holdings to approximately $265.8 million. At the same time, the endowment purchased nearly $87 million worth of shares in BlackRock’s Ethereum Trust, marking its first direct ETF exposure to Ether.
The adjustment comes amid a broader decline in cryptocurrency markets, with Bitcoin falling sharply from its late 2025 highs and Ethereum falling along with it. Analysts suggest this change could reflect a portfolio rebalancing rather than a direct change in sentiment, potentially linked to the unwinding of complex institutional trading strategies.
Nonetheless, these moves are consistent with broader institutional behavior. According to the filing, total ownership of major Bitcoin ETFs has declined significantly over the same period, indicating investors are reassessing their risk exposure while seeking alternative cryptocurrency allocations.
Despite these changes, cryptocurrency ETFs remain a small portion of Harvard’s $56.9 billion endowment, accounting for less than 1% of total assets.
Ethereum price stalls below key resistance level
Ethereum price has struggled to regain momentum following a steep sell-off. The asset has recently hovered around $1,980 after falling about 40% over the past month and remains well below its 2025 high above $4,900.
Technically, the market continues to print lower highs and lower lows, keeping the broader trend bearish. Analysts are closely watching the $2,150-$2,200 range, which must be recovered to signal a potential reversal. Failure to hold support near $1,900 could expose a downside target between $1,700 and $1,600.
Derivatives data shows open interest and volume are decreasing, suggesting traders are reducing risk rather than aggressively positioning for a breakout. ETF flows are also mixed, with recent net outflows highlighting cautious institutional sentiment in the near term.
On-chain data and network fundamentals offer mixed signals
Ethereum price action remains weak, but blockchain data paints a more nuanced picture. Large holders have continued to accumulate ether despite the price drop, adding significant balances through their whale wallets. The cumulative address now holds a record amount of ETH.
Network utilization has also been strengthened. Ethereum recently processed a record 17.3 million transactions in a week, with median fees falling below $1. This means increased efficiency and sustained user activity.
Meanwhile, Ethereum co-founder Vitalik Buterin repeatedly emphasized that the long-term value of the network lies in its neutrality and censorship resistance, emphasizing open participation regardless of individual viewpoints. His comments come as debate over decentralization and ecosystem direction intensifies.
Cover image by ChatGPT, ETHUSD chart by Tradingview
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