Ethereum Price Drops Amid Strong Selling Pressure
The price of Ethereum (ETH) fell 3% on Friday, closing at $2,730. Both retail and institutional investors in the US are selling ETH in spot and derivatives markets. The Ethereum Coinbase Premium Index hit -0.128, its lowest since February. This shows heavy selling from US traders.
US Investors Lead Ethereum Outflows
US investors are driving Ethereum’s decline. The Coinbase Premium Index dropped 295 points since October 10. Ethereum exchange-traded funds (ETFs) in the US saw eight straight days of outflows, totaling $1.28 billion. This is the largest negative streak since 2024.
US futures traders have lowered their leverage. Open interest on the Chicago Mercantile Exchange (CME) for Ethereum fell to 2.13 million ETH, below Binance’s 2.53 million ETH. Overall open interest across all exchanges dropped by 500,000 ETH in 24 hours but rose slightly by 250,000 ETH over a week. This suggests some traders expect a price rebound.
Ethereum network activity is also down. Active addresses averaged 356,000 over seven days, a 25% drop to levels not seen since June.
Ethereum Price Outlook: Key Levels to Watch
Ethereum liquidations reached $407.5 million in 24 hours, with $340.6 million from long positions. ETH must reclaim the $2,850 level to avoid further losses. This level is important as many investors, including whales and small holders, accumulated near this price.
If ETH fails to return above $2,850, it may fall to $2,300, a strong support zone near the average holding cost for many investors. For prices to rise, ETH needs to break above its Exponential Moving Averages and hold those levels.
Technical indicators like the Relative Strength Index and Stochastic Oscillator show ETH is oversold. This could lead to a short-term price rebound despite current bearish momentum.
