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Date: 2025-02-27 07:16:29
Ethereum is grappling with mounting selling pressure as whales persist in disposing of their ETH assets and spot Ethereum ETFs record substantial net outflows.
Data from SoSoValue indicates that U.S. Ethereum (ETH) spot ETFs experienced $94.3 million in net outflows on Feb. 26. BlackRock topped the list of outflows with $69.7 million, trailed by Fidelity with $18.3 million and Grayscale with $3 million. In the past week, the total net outflows have amounted to $222 million.
At the time of publication, ETH had plunged by 5% over the past 24 hours, trading at $2,340. As per CoinGlass data, liquidations over the same period amounted to $127.93 million. Additionally, Ethereum's total value locked has declined to $51.5 billion, its lowest level since November 2024, indicating reduced DeFi activity and liquidity.
Increased whale activity is further intensifying the selling pressure. Lookonchain, a blockchain analytics firm, identified two significant transactions on Feb. 27, including the sale of 8,074 ETH worth $19.63 million and the deposit of 10,000 ETH worth $23.44 million to Binance. This suggests that large holders are offloading their positions.
The market turmoil is escalating following former U.S. President Donald Trump's reiteration of plans to impose a 25% tariff on imports from the European Union, which has resulted in volatility in the cryptocurrency markets.
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The recent Bybit hack, which amounted to $1.4 billion, has further exacerbated the negative sentiment. Despite some analysts' expectations that Bybit's acquisition of large amounts of ETH to offset the losses would bolster Ethereum's price, selling pressure has continued to exceed any bullish expectations.
However, Ethereum may find solace in two significant developments despite the current bearish outlook. If the Securities and Exchange Commission approves staking for Ethereum ETFs, it may enhance Ethereum's position as a long-term investment asset.
Furthermore, on April 8, the much-awaited Pectra upgrade is scheduled to go live. The expected improvements in network scalability and efficiency could attract new developers and investors, providing a boost to Ethereum's ecosystem.
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