Ethereum experienced a slight decline of less than 1% on the day, as of press time, after a robust 10% increase over the past week. Following the recent rally, the overall crypto market still encounters difficulties, with total capitalization hovering just above $3 trillion. The performance of ETH prices has reflected the capital outflow seen since the start of Q4. This quarter has demonstrated a historically positive trend for crypto since 2020, with the exceptions of 2022 and 2025, according to the reports. The recent decline in value can be linked to the impact of Ethereum exchange-traded funds and significant trading by large investors. Nonetheless, the market showed a slight recovery in the last week of November. Will the capital outflow result in further declines, and if so, how significant will they be?
Data showed that the last five consecutive days saw positive inflows surpassing $368 million. This suggested a flow of capital at a time when the overall market was finding its balance. In the larger context, November saw notable outflows. Approximately $1.42 billion was withdrawn from Ethereum funds, a figure that is three times the $403 million recorded in March. The last quarter of the year has displayed a downward trend, with November turning out to be especially tough for ETH. In July and August, significant inflows propelled the price upward, but the later drop in this activity led to a downturn. Heightened capital movement away from OG whales further intensified selling pressure, as the capital outflow went beyond just the Ethereum ETF activity.
According to a source, one early adopter of ETH has started liquidating assets after holding for around eight years, having initially bought at $517. A notable investor has been consistently reducing his holdings, with the latest transaction involving 18,000 ETH, amounting to $54.78 million. The deposit to Bitstamp acted as a cue to sell, suggesting ongoing capital outflow from the Ethereum ecosystem. The whale has offloaded 87,824 ETH, totaling $270 million, while still retaining over $200 million in Ethereum. The remaining holdings reflect a solid confidence in the asset’s ability to rebound, particularly when viewed through a long-term lens. On the hourly charts, Ethereum held its ground above a multi-day trendline support, a bullish setup that coincided with a 10% weekly gain, propelling the price from the $2,600 zone to $3,040 as of the latest update.
The capital outflow presented a risk of a collapse below the rising trendline. If this occurs, the ETH price could experience a correction of approximately 5% to 6% from its present level, with the price possibly falling back under 3,000 again. If ETH can maintain this support level, the current rebound could drive the price higher.