The Green Post Ireland
Ethereum has fallen below the closely watched $3,000 level after a sharp pullback driven by heavy outflows from U.S. spot Ethereum exchange-traded funds and a broader shift toward risk aversion across global markets.
Data from SoSoValue shows that the nine U.S.-listed spot Ethereum ETFs posted combined net outflows of roughly $224.7 million on Monday, 15/12/2025. This marked the largest single-day withdrawal since late November and extended the streak of daily net outflows to three consecutive sessions. BlackRock’s Ethereum fund recorded the biggest exit, with about $139 million leaving the product, while Grayscale’s ETHE and ETH funds saw withdrawals of approximately $35 million and $20 million respectively. None of the ETFs attracted fresh inflows during the session.
ETF selling intensifies pressure on ETH
The sustained withdrawals have added to a challenging month for Ethereum-linked investment products. Over the past three trading days alone, the group of spot ETFs has shed close to $286.5 million. On a broader timeline, December has remained negative overall, continuing a weak trend from November, when net outflows totaled around $1.42 billion.
As selling pressure built, Ethereum dropped decisively below the $3,000 psychological threshold, sliding to an intraday low near $2,895 before stabilising slightly higher around $2,929. The move represented a decline of more than 6% over 24 hours. The $3,000 zone had acted as a reliable support area multiple times in recent weeks, making its loss technically significant for short-term market sentiment.
Liquidation cascade amplifies the decline
The sharp drop appears to have caught highly leveraged traders off guard. Once ETH broke below key support, forced liquidations accelerated the sell-off, a dynamic often referred to as a liquidation cascade. When long positions fail to meet margin requirements, exchanges automatically close them, adding further downward pressure to price.
Figures from CoinGlass indicate that nearly $207 million in Ethereum long positions were liquidated, contributing to approximately $658.8 million in liquidations across the wider crypto market. This pullback coincided with investors reducing exposure ahead of key U.S. jobs data, which could influence expectations for future interest rate policy.
Markets have remained cautious since the Federal Reserve signalled a slower pace of easing ahead, hinting at fewer rate cuts than previously anticipated despite delivering a 0.25% reduction earlier this year. Cryptocurrencies typically benefit from clearer prospects of monetary easing and tend to struggle when the outlook becomes more uncertain.
Bearish chart patterns raise downside risk
From a technical perspective, Ethereum’s daily chart is flashing multiple warning signs. Price action has formed a large bearish flag pattern, which typically develops after a sharp decline followed by a period of consolidation. Such structures often signal continuation of the existing downtrend once support gives way.
In addition, ETH confirmed a so-called death cross in late November, when the 50-day moving average crossed below the 200-day average. The combination of these indicators increases the likelihood of further weakness unless sentiment improves materially.
If selling continues, Ethereum could test the lower boundary of the bearish flag near $2,620, a level corresponding to its November low that previously attracted buyers. On the upside, traders are watching resistance around $3,170, which aligns with the 23.6% Fibonacci retracement level. A sustained move above that zone would be needed to shift momentum back in favour of the bulls and stabilise the broader outlook.
