Ethereum, the world’s second-largest cryptocurrency by market capitalisation, extended its decline, falling by nearly 5 percent within 24 hours as institutional investors reduced exposure amid sustained exchange-traded fund (ETF) outflows.
The digital asset traded around $2,809, pressured by negative investor sentiment and continued withdrawals from US-listed spot Ethereum ETFs. The pullback has contributed to broader weakness across the cryptocurrency market, which has seen widespread selling across major tokens.
Overall, the global crypto market shed approximately 3 percent, bringing total market capitalisation down to $2.88 trillion. The decline was exacerbated by investors unwinding leveraged positions ahead of anticipated interest rate tightening by the Bank of Japan later this week.
Ethereum underperformed the broader market, falling 4.74 percent over the past 24 hours. During the same period, more than $200 million worth of ETH positions were liquidated, intensifying sell pressure and dragging down valuations across the digital asset space.
Trading activity also softened, with Ethereum’s 24-hour trading volume easing to $24.25 billion. As a result, the cryptocurrency’s market capitalisation declined to approximately $339 billion as of Wednesday’s session.
Data from CoinMarketCap showed that US spot Ethereum ETFs recorded more than $224 million in net outflows in a single day, signalling a notable retreat by institutional investors.
Market intelligence reports indicate that BlackRock’s ETHA fund accounted for a significant portion of the withdrawals, contributing to a reduction of nearly $3 billion in total ETF assets since mid-December.
On 17 December, BlackRock transferred 74,973 ETH to custody wallets as part of weekly ETF outflows estimated at $400 million. The asset manager currently holds around 412,000 ETH, valued at over $1.17 billion, across its Ethereum-related investment products.
Crypto market analysts warned that sustained selling pressure could push Ethereum below the $2,800 level, a key psychological support zone. However, some technical indicators suggest that oversold conditions may attract short-term bargain hunting.
Ethereum’s recent weakness reflects a combination of forced liquidations, institutional repositioning, and broader macroeconomic uncertainty. While short-term stabilisation remains possible, analysts note that macro headwinds continue to dominate market direction.
Despite the current downturn, Ethereum remains central to institutional blockchain adoption. The network recently hosted JPMorgan’s first tokenised money market fund, highlighting the growing use of public blockchains for regulated financial products.
The $100 million tokenised fund, launched by JPMorgan on Ethereum’s public blockchain, demonstrates enhanced transparency, interoperability, and the expanding role of blockchain technology within traditional finance.
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