Ethereum ETF Exodus Hits $900M Amid Price Struggles and Institutional Woes

Ethereum’s price is currently below $1,600, leading to significant ETF outflows of $909M since new tariffs. The overall assets in ETH ETFs have decreased by over 60%, causing institutional uncertainty. Justin Sun remains committed to his holdings despite market volatility. Analysts highlight potential bullish signals, yet broader sentiment suggests investor scepticism and caution.

Ethereum’s price performance continues to be concerning as it trades below $1,600, with net outflows from Ethereum exchange-traded funds (ETFs) reaching $909 million since new tariffs were imposed by Donald Trump. The total assets invested in these ETFs have also plummeted over 60%, from $14.28 billion in December 2024 to only $5.25 billion, indicating heightened institutional skepticism amidst macroeconomic uncertainties.

Since the beginning of the year, Ethereum’s value has decreased by 35%, resulting in a year-to-date return of -52%. Despite a strong performance at the end of 2024, most of these gains have been reversed. Analysts highlight the slumping sentiment surrounding ETH, with experts like CryptoBirb noting that the asset’s chart reflects a negative outlook.

Various ETF providers are currently anticipating approval from the U.S. Securities and Exchange Commission (SEC) for staking features in their Ethereum funds. Such approvals could potentially yield an additional 3% and help stabilise outflows. However, investor demand for long positions remains tepid, particularly as Ethereum prices oscillate around 2018-2022 levels.

In contrast, Justin Sun, founder of Tron, recently asserted his commitment to holding Ethereum despite the downtrend. Sun, reportedly linked to a wallet containing over 168,000 stETH, has not significantly altered his holdings despite market fluctuations. This comes after significant ETH transfers were flagged, hinting at possible sell-offs by other investors.

Ethereum’s price stagnation around $1,590 highlights its failure to climb back following weeks of declines. It currently trades beneath both the 50-day and 200-day exponential moving averages, which are pivotal in determining potential recoveries. The consistent lower highs indicate a weakening buyer base, and prices remain tightly bound between $1,550 and $1,600. A breach above $1,950 could restore bullish sentiment; otherwise, a drop below $1,550 could see prices plunge to $1,350, a territory not revisited since early 2023.

Despite the gloomy outlook, analyst Belle identified a Power of Three (PO3) formation, suggesting a prospective price target near $10,000 under ideal conditions. Additionally, the CME ETH futures chart reveals unfilled price gaps ranging from $1,763 to $3,930, which often represent technical recovery targets. However, market analysts remain cautious, noting that Federal Reserve easing and ETF staking approvals are the primary factors that could revitalise Ethereum’s price trajectory amidst rising outflows and persistent macroeconomic pressures.