Ethereum Faces Pressure Amid ETF Outflows and Liquidations

Ethereum faces increased selling pressure due to outflows from ETFs and liquidation of leveraged positions. Sellers are holding the price at the $2,410 support. After losing $2,560, the price dropped to $2,350, triggering significant seller activity. Buyers attempted to rebound but failed to sustain growth, falling into the $2,460–2,480 zone. As a result, ETH returned to the $2,404–2,410 area, where sellers might retest the bottom. A four-hour close below $2,404 is likely to trigger additional stop orders and open the path to $2,350, then to $2,320. However, if buyers hold and close above $2,450 on increased volume, it will signal rising demand and open the possibility of a return to $2,480–2,520.

While Ethereum struggles for $2,410, continuous outflows from ETFs weaken another layer of support. U.S. spot ETH-ETFs withdrew $319.97 million for the week ending October 16. This followed an inflow of $689.88 million on September 25, but subsequent weekly outflows nullified the momentum. Prior to the latest withdrawal, outflows totaled $138.02 million and $542.07 million. Cumulative net inflows decreased from $13.94 billion to $12.94 billion, with total assets down to $14.95 billion. The decline in institutional spot demand increases dependence on other buyers.

Liquidations of long ETH positions reached $1.08 million. Five hours ago, ETH's drop forced the closure of a long position of 3,206 ETH at around $2,355.97, with a total loss of $286,767. Partial liquidations and position reductions added $71,270, $28,991, and $30,658. One account does not confirm liquidations across the market, but forced exits can amplify sales when leveraged traders reduce risk. As a result, repeated tests of $2,410, the $319.97 million outflow from ETFs, and leveraged liquidations weaken support; upon a breakout, buyers may face threats at $2,350 and $2,320.