Ethereum drops below $3,000; $165M liquidations and $533M ETF outflows raise capitulation risk as $2,500 support comes into focus

first published 2025-12-18T14:46:24Z

Ether has slid under $3,000, a 42% drawdown from its all-time high. Analysts warn that a break of $2,800 support could push ETH toward roughly $2,100 — a price level where about 2.1M ETH was previously acquired. Institutional indicators are bearish: US spot Ethereum ETFs posted five straight days of outflows (~$533.1M) and treasury buying rates have fallen sharply. Prediction markets show mixed probabilities for sub-$2,200 moves before 2026; past bear cycles saw much deeper (80–90%) drawdowns.

AI Analysis

The story reports concrete bearish signals: ETH is below $3,000 (42% off ATH); analysts identify $2,800 as a key support whose breach could target ~$2,100 (where ~2.1M ETH was bought). Institutional flows are negative — US spot ETH ETFs had five consecutive days of outflows (~$533.1M) — and treasury buying rates have fallen, both increasing downside risk. Prediction markets are mixed and historical bear cycles have seen much larger drawdowns, supporting a bearish outlook.

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