Ethereum remained under heavy pressure as broader market weakness dragged altcoins lower.

After peaking near $4,900 earlier this cycle, Ethereum stayed locked in a downtrend with only brief recovery attempts. At press time, ETH traded near $2,856, down 2.36% daily and about 10% weekly.

That sustained decline appeared to push both whales and institutions toward the exit.

Whales head for the door

On-chain data showed a major Ethereum [ETH] whale accelerating profit-taking.

According to Onchain Lens, the whale deposited 7,654 ETH, worth about $21.62 million, into Binance. Lookonchain reported that this transaction locked in roughly $4 million in profit.

A few hours earlier, the same address deposited 10,169 ETH, valued near $29.77 million, realizing an additional $11.36 million gain.

In total, the whale offloaded 17,823 ETH, worth approximately $51.4 million, through Binance deposits.

Blockchain records showed the whale originally withdrew 19,505.5 ETH, staked the assets, and later redeposited 20,269 ETH. That strategy generated about 763.58 ETH in staking rewards.

After the latest deposits, cumulative realized profit stood near $15.36 million.

Historically, whale selling during prolonged downtrends often reflected fading confidence. Large holders typically exited when they expected further downside risk.

Institutions are even more bearish

In addition to individual whales exiting the market, institutional investors have dominated the sell-side activity. 

Data from SoSoValue showed Ethereum Spot ETFs recorded net outflows for five consecutive sessions. Over that period, cumulative outflows reached about $533.25 million.

On the 17th of December, for example, outflows jumped to -$22.43 million, reflecting intense selling pressure. As a result, Ethereum’s Spot ETFs saw Total Assets drop from $21 billion to $17 billion, marking a $4 billion dip in five days.

Such a sustained period of outflows suggests that institutions turned bearish and reduced exposure, an apparent lack of market conviction.

A breakdown or a rebound?

Ethereum’s price action reflected that caution.

Sellers continued defending higher levels, while buyers struggled to sustain rebounds. That imbalance kept ETH locked in a broader downtrend.

Momentum indicators reinforced the bearish tone. The Stochastic Momentum Index dropped into oversold territory, reflecting heavy downside pressure.

At press time, ETH hovered just above the 0.618 Fibonacci Retracement near $2,807. A failure to hold that level could open the door to a move toward the 0.786 retracement around $2,633.

However, exchange activity hinted at a potential short-term shift.

Exchange Netflows turned sharply negative, falling to about -47,100 ETH from roughly +46,000 ETH the prior day. That swing suggested reduced sell-side pressure and emerging demand.

If buyers defended the $2,807 zone, ETH could attempt a rebound toward $2,929. A stronger recovery would place resistance near the $3,200 region.

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