Grayscale Selling Pressure Weighs on ETH

Ethereum is facing significant headwinds as persistent outflows from U.S. spot Ethereum Exchange-Traded Funds (ETFs) weaken market confidence. Grayscale’s ETHE fund has been a major source of this pressure, recording cumulative net redemptions of $4.93 billion—the largest outflow of any Ethereum-listed ETF. While the broader ETH ETF market did see daily net inflows of $76.5 million, these were largely offset by Grayscale’s continued selling.

A key factor driving these redemptions is ETHE’s 2.5% fee, which is substantially higher than the rates offered by competitors like BlackRock’s ETHA at 0.25%. This situation mirrors the heavy selling seen in Grayscale’s Bitcoin trust (GBTC) earlier this year, as long-time holders rotate into lower-cost alternatives. Despite strong daily inflows of $68.27 million for BlackRock’s ETHA, the market remains fragile as long as ETHE’s outflows continue. Combined net ETF assets currently stand near $19.15 billion, or about 5.2% of Ethereum’s total market capitalization.

Technical Outlook Remains Bearish Amid Macro Uncertainty

Broader market uncertainty is compounding the pressure on Ethereum. A cautious outlook from the Federal Reserve, tightening liquidity conditions, and liquidations of leveraged crypto positions are encouraging investors to remain on the sidelines. While institutional demand for ETH exposure through products from BlackRock, Fidelity, and Bitwise is still present, the rotation out of Grayscale has created an uneven market dynamic that needs to resolve before a sustained rally can begin.

From a technical perspective, Ethereum’s price structure leans bearish. After a steep decline in November, ETH is struggling to stabilize and remains within a descending channel that began at the $3,666 breakdown. Trading near $3,002, the price is capped by the 20-day Exponential Moving Average (EMA) at $3,087, a level that has rejected every rebound attempt for nearly a month. A daily close above this resistance would be the first sign of a meaningful momentum shift.

The Relative Strength Index (RSI) has risen from oversold territory near 30 to around 40, indicating that bearish pressure is easing, but it doesn’t yet signal a bullish reversal. To confirm a bullish trend, ETH must first break the 20-day EMA and then overcome the channel’s ceiling near $3,300. A successful breakout could open the door to targets at $3,666 and potentially $4,242. However, a rejection could send the price back toward support at $2,632, with a deeper decline exposing the key demand zone at $2,192.

Presale Project Maxi Doge Gains Traction

As major assets like Ethereum consolidate, some traders are turning their attention to early-stage projects. The presale for Maxi Doge, a new meme coin, has attracted significant interest, raising over $4.2 million. The project aims to build a strong community through engagement features like ROI contests and events.

Maxi Doge also incorporates a staking mechanism, allowing holders of its $MAXI token to earn daily rewards from a smart contract. This utility is designed to encourage long-term participation in the ecosystem. With the token currently priced at $0.00027 and a price increase scheduled, the presale continues to build momentum.

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