Ethereum Drops to ~$2,980 After $555M ETF Outflows; Bitmine Accumulates 4M ETH
Ethereum (ETH) fell about 2% to near $2,970–$2,980 after U.S. spot ETH ETFs recorded heavy outflows. CoinShares and other trackers reported roughly $555 million exited ETH products this week — the largest weekly outflow since August 2025 — led by BlackRock’s ETHA. Broader digital-asset products saw about $952 million in redemptions, with Bitcoin also suffering significant outflows. Market caution stems from delayed U.S. crypto legislation, profit-taking after a recent monthly gain, and weakening technicals. Derivatives risk amplified the pullback: Deribit flagged roughly $27 billion of BTC and ETH options expiring on Dec. 26, concentrating critical ETH strikes near $2,900 and raising the chance of hedging flows and liquidation events. Recent liquidations (~$222M) and reduced spot and derivatives volumes point to position unwinding. Technical indicators show ETH failing to clear near-term resistance around $3,080–3,150 and trading below recent averages; immediate support sits near $2,975–$2,980 with secondary support around $2,800–$2,900. Offsetting downside, Bitmine reportedly accumulated ~4 million ETH (adding to a large crypto treasury), suggesting institutional dip-buying that may provide local support. For traders: expect subdued volatility into the options expiry, elevated downside risk if $2,975–$2,980 breaks (which could trigger stop-loss cascades), and potential short-covering or rebound if ETH reclaims $3,150 post-expiry. Manage leverage, tighten stops on long positions, and monitor ETF flows, options expiries and on-chain whale activity for directional cues.
Bearish
The combined reports point to a short-term bearish outlook for ETH. Large spot ETF outflows (~$555M) remove a steady inflow source and increase selling pressure. Concurrently, derivatives dynamics — a concentrated ~$27B options expiry with critical ETH strikes near $2,900 — raise the probability of hedging flows and liquidation cascades that can accelerate declines. Lower spot and derivatives volumes and recent ~$222M in liquidations indicate position unwinding and weakened demand. Technically, ETH is trading below recent averages and failing to clear resistance around $3,080–3,150, with immediate support at ~2,975–2,980; a sustained break below that level would likely trigger stop-losses and further downside. Offsetting factors (Bitmine’s reported 4M ETH accumulation) may provide localized buying and reduce the pace of any fall, but institutional dip-buying alone is unlikely to reverse the short-term trend without a return of positive flow or stronger macro/regulatory catalysts. For traders, the risk profile favors caution: reduce leverage, prefer short or hedge strategies near resistance, and watch ETF flows and options expiry for potential volatility spikes.