Ethereum’s Ether fell sharply from Thursday to Friday, falling over 10% from peak to trough on a broad market crypto sell-off accelerated by bitcoin breaking below the $100,000 level.
The second-largest cryptocurrency fell from $3,565 earlier Thursday to $3,060 early Friday, erasing all of last week’s pullback. It recently stabilized just below $3,200, still down about 8% over the last 24 hours.
The move coincided with a broad sell-off in US markets, with stocks and bonds falling in tandem with cryptos. The US government shutdown, which has just ended, weighed on liquidity conditions. Also adding to the pressure is the increasing likelihood that the Federal Reserve will leave interest rates unchanged at its December meeting.
Since the Federal Reserve’s meeting in late October, in which Chairman Jerome Powell threw cold water on almost universally expected rate cuts in December, U.S.-listed spot ether ETFs have seen $1.4 billion in net outflows, data from Farside Investors shows. Thursday’s nearly $260 million outflow was the biggest single-day bleed in a month.
On top of that, long-term holders are also heading for the exit door. Glassnode’s blockchain data showed that long-term holders spanning 3-10 years accelerated sales to approximately 45,000 ETH (around $140 million at current prices) daily on a 90-day moving average, the highest distribution pace since February 2021.
Blockchain data also suggests deteriorating fundamentals. Monthly active addresses on the network have fallen to 8.2 million, down from over 9 million in September, while transaction fees over the past month collapsed 42% to just $27 million, Token Terminal data shows.
Key technical levels to watch
ETH broke a critical support level of $3,325, establishing a clear bearish trend with consecutive lower highs, CoinDesk Research’s technical analysis model suggested.
- Support/Resistance: Primary support is at $3,080 with secondary floors at $3,050 and $2,880. Key resistance is formed at $3,330 (previous support), $3,500 (major pivot) and $3,650 (declining channel highs).
- Volume Analysis: Selling peaked at 641,103 below the $3,325 split – 71% above 24-hour norms. Subsequent volume decreased to 80% of 7-day average, indicating potential exhaustion.
- Chart Patterns: ETH broke its rising channel in April, creating a bearish structure with lower highs. The consolidation range of $3,077-$3,146 suggests possible base formation.
- Objectives & Risk/Reward: Breaking $3,050 support reveals $2,880 downside, while recapture of $3,563 is needed for bullish momentum. A crucial push above $3,500 is the $3,650-$3,800 target.
Disclaimer: Portions of this article were generated using AI tools and reviewed by our editorial staff to ensure accuracy and adherence to our standards. For more information, see CoinDesk’s full AI policy.
