Ethereum Price Outlook: $75M ETF Outflows, Record-Low Supply, and a Bearish Channel Test
Ethereum slips as $75M ETF outflows meet record-low exchange supply. Price tests key support while a bearish channel shapes ETH’s near-term
Quick overview
- Ethereum traded near $3,038, experiencing a slight decline of 0.08% as institutional flows showed strain with $75.21 million in net outflows from spot Ethereum ETFs.
- All nine listed Ethereum ETFs reported zero inflows, with BlackRock's ETHA accounting for most of the outflows despite leading in cumulative inflows.
- Ethereum's circulating supply on exchanges has hit an all-time low of 8.84%, attributed to increased use in staking and other protocols, indicating structural scarcity.
- The price of Ethereum remains under pressure within a bearish channel, with immediate support at $2,632 and resistance at $3,062, suggesting a downward bias in the near term.
Ethereum traded near $3,038 on Sunday, slipping 0.08% in 24 hours, as institutional flows continued to show strain. Spot Ethereum ETFs saw $75.21 million in net outflows on December 5, marking their fourth consecutive day of withdrawals.
All nine listed funds reported zero inflows, with BlackRock’s ETHA accounting for nearly the entire outflow despite still leading the sector with $13.09 billion in cumulative inflows.
Fidelity’s FETH remains the second-strongest performer with $2.62 billion in net inflows, while Grayscale’s ETHE continues to unwind, sitting at –$4.99 billion since its conversion from a trust. Over the past week, flows swung sharply:
- Dec 2–4: Outflows of $79.06M, $9.91M, $41.57M
- Dec 3: Inflows of $140.16M (Fidelity-led)
Altogether, Ethereum ETFs manage $18.94 billion in AUM, with daily trading volume ticking up to $1.77 billion. The trend contrasts sharply with Bitcoin ETFs, which added $54.79 million on the same day, underscoring a widening sentiment gap between BTC and ETH.
On-Chain Supply Hits All-Time Low
While ETF flows lean negative, Ethereum’s circulating supply on exchanges has fallen to 8.84%, the lowest level on record and significantly below Bitcoin’s 14.8%. Analysts attribute the decline to increased ETH use in staking, restaking protocols, L2 networks, collateral loops, and long-term custody.
Milk Road summed it up: “ETH supply is tightening in the background while the market decides its next move.”
This structural scarcity remains one of Ethereum’s strongest tailwinds, even as short-term price action softens.
Price Trends Show Compression Amid Dual Market Forces
ETH traded between $2,995–$3,146 over 24 hours, down 2.7% on the day and 10.3% over the past month. The market is balancing two opposing pressures:
- Selling from ETF redemptions
- Shrinking exchange supply reducing liquidity
This creates an environment where price reactions may grow sharper as available ETH tightens.
Ethereum (ETH/USD) Technical Outlook: Bearish Channel Still in Play
Ethereum continues to trade within a descending channel, with price capped below the 20-EMA at $3,062, reinforcing it as dynamic resistance. Daily candles show repeated rejection in the $3,120–$3,150 zone, a clear sign sellers remain active at the mid-channel level.
Immediate support stands at $2,632. A confirmed break below this floor may expose the lower channel boundary near $2,450, followed by $2,192, where prior consolidation provides structural support.
On the upside, bulls need a decisive close above $3,226 to shift momentum and attempt a move toward the channel top. With RSI hovering at 46, momentum remains soft and lacks bullish divergence, keeping near-term bias tilted downward.
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