Ethereum faced significant pressure as broader market weakness dragged altcoins lower. After peaking near $4,900 earlier in the cycle, Ethereum has remained locked in a downtrend, with only brief and unsuccessful recovery attempts. At press time, ETH was trading around $2,856, down 2.36% on the day and roughly 10% over the week. The persistent decline appears to have pushed both whales and institutions toward the exit, reinforcing the bearish tone surrounding the asset.
Data shows that a major Ethereum whale has intensified profit-taking. According to the reports, the whale deposited 7,654 ETH, worth about $21.62 million, into Binance, with Lookonchain estimating realized profits of roughly $4 million. Earlier, the same address deposited 10,169 ETH valued near $29.77 million, booking an additional $11.36 million gain. In total, the whale offloaded 17,823 ETH worth approximately $51.4 million via Binance deposits. Blockchain data reveals the whale initially withdrew 19,505.5 ETH, staked the holdings, and later redeposited 20,269 ETH, earning about 763.58 ETH in staking rewards and bringing cumulative realized profits to around $15.36 million.
Historically, whale selling during extended downtrends has often signaled declining confidence and expectations of further downside. Alongside these large individual exits, institutional investors have also driven selling pressure. Data shows Ethereum Spot ETFs recording net outflows for five consecutive sessions, totaling about $533.25 million. On December 17 alone, outflows reached $22.43 million. Notably, total assets held by Ethereum Spot ETFs fell sharply from $21 billion to $17 billion in just five days, underscoring a $4 billion reduction and highlighting a clear lack of institutional conviction.
Price action reflects this caution. Sellers continue to dominate at higher levels, while buyers struggle to sustain rallies, keeping ETH within a broader downtrend. Momentum indicators reinforce the bearish bias, with the Stochastic Momentum Index deep in oversold territory. ETH is currently hovering just above the 0.618 Fibonacci retracement near $2,807; a break below could open the door toward the 0.786 level around $2,633. However, exchange data hints at a potential short-term shift, as netflows swung sharply to around -47,100 ETH from +46,000 ETH the prior day, signaling easing sell pressure. If buyers can defend $2,807, ETH could attempt a rebound toward $2,929, with stronger resistance emerging near $3,200.