Ethereum (ETH) has been caught in a major price downturn, shedding 10.41% over the past 24 hours and accumulating a staggering 33.10% loss over the last month. The decline comes amid broader market turbulence, with institutional investors such as BlackRock and Fidelity spearheading ETH sell-offs through spot exchange-traded funds (ETFs). Despite this, spot traders have emerged as a stabilizing force, preventing an even steeper plunge, according to AMBCrypto’s analysis.
Institutional Exodus: A Week of Heavy Sell-Offs
The ongoing sell-off by institutional investors has played a pivotal role in ETH’s price decline. Since February 24, institutional investors have offloaded approximately $293 million worth of ETH ETFs. Notably, BlackRock and Fidelity have contributed the most to this trend, selling $144 million and $65.4 million worth of ETH, respectively.
This mass exodus reflects skepticism among major financial institutions regarding ETH’s price stability. Coinbase’s ETH/USD daily chart highlights the impact of these sell-offs, with Ethereum plummeting from an opening price of $2,821.64 to its current level of $2,103.84.
Spot Traders Absorb Selling Pressure
Amid the institutional exodus, spot traders have stepped in, absorbing some of the sell pressure by acquiring ETH in large quantities. Between February 24-28, approximately $864 million worth of ETH was purchased across cryptocurrency exchanges, as per Coinglass’ exchange netflow data. Even as ETH faced a sharp 10% drop, spot traders recorded their second-largest buying spree of the week, acquiring $241 million worth of ETH.
Retail investors have driven much of this buying pressure, counteracting the influence of large institutional sellers. However, data from IntoTheBlock indicates that large investors have continued to offload ETH, dumping an additional 114,850 ETH since February 25.
Can Ethereum Hold Above $2,000?
A crucial indicator to watch is Ethereum’s exchange reserve levels. According to CryptoQuant, ETH reserves currently stand at 18.9 million ETH. If this figure declines further, it could signal a potential price rebound as selling pressure eases.
Also Read: Ethereum Whales Dump 440K ETH – Will Prices Rebound or Drop Further?
For now, Ethereum’s ability to maintain the $2,000 support level will largely depend on whether retail traders can sustain their buying momentum against ongoing institutional sell-offs.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of CoinBrief.io. Before making any investment decisions, you should always conduct your own research. Coin Brief is not responsible for any financial losses.
