As the year winds down, Ethereum investors anticipating a seasonal surge are instead facing a stark trend: institutional capital is rapidly exiting. Spot Ethereum ETFs have been hit by a sustained wave of redemptions, raising questions about near-term price stability and whether key support levels will hold.

A Two-Week Exodus of Capital

Data from Farside Investors reveals a concerning pattern. Since December 11th, these investment vehicles have witnessed nearly $854 million in net outflows. A single day of positive inflows—$84.6 million on December 22nd—provided only a brief respite in an otherwise consistent withdrawal cycle. Notably, BlackRock’s iShares Ethereum Trust (ETHA), a bellwether for institutional sentiment, has been a significant contributor to the outflows. This suggests a broad-based de-risking move by major players as the holiday period and tax year-end approach.

Price Pressure and the Critical $2,500 Level

Despite a modest 24-hour bounce, Ethereum faces clear headwinds. Trading around $2,964, ETH’s resilience near the $2,900 level indicates potential absorption of selling pressure by retail or on-chain buyers. However, the sheer scale of ETF outflows creates persistent downward pressure that may eventually overwhelm the market.

The key technical level to monitor is $2,500. This zone represents a major psychological and structural support. If the current outflow trajectory continues, a test of this level becomes increasingly plausible. For a deeper dive into Ethereum’s on-chain support metrics and exchange flows, resources like Glassnode’s weekly reports offer valuable complementary data to ETF figures.

Bitcoin ETFs Face Similar Strains

The institutional pullback is not isolated to Ethereum. Spot Bitcoin ETFs have seen an even larger exodus, with over $1.538 billion in outflows in the same period. Brief inflows on December 12th and 17th did little to alter the dominant narrative of profit-taking and portfolio rebalancing. This parallel trend underscores a sector-wide cautious stance among institutional investors in December, contributing to Bitcoin’s consolidation below recent highs.

Technical Momentum Hints at Divergence

From a chart perspective, the short-term momentum remains bearish. Both BTC and ETH maintain a Relative Strength Index (RSI) below 50, confirming the current selling pressure. However, a nuanced shift may be emerging. The recent northward trajectory of the RSI, even as prices struggle to gain decisively, can signal a developing bullish momentum divergence. This occurs when price makes a lower low but momentum indicators start to rise, often a precursor to a potential trend reversal. Traders often watch for such signals on platforms like TradingView, which provides robust charting tools for technical analysis.

The Bottom Line

While the significant ETF outflows present a clear near-term challenge for Ethereum, the market is sending mixed signals. The absorption of selling at current levels and a potential bullish RSI divergence suggest that not all participants are bearish. The coming weeks will be critical in determining whether institutional outflows persist into the new year or if the current pressure represents year-end repositioning. All eyes will remain on the $2,500 support level as the next major test for Ethereum’s bullish structure