Ethereum’s failure to breach the critical $4,100 resistance level precipitated a significant price drop, with the asset falling below $3,600 according to market analyst Michaël van de Poppe. This decline catalyzed substantial investor movement.
The price drop coincided with a net outflow of $122.7 million worth of Ethereum from exchanges. This movement suggests investors are potentially shifting holdings into cold storage wallets or decentralized finance (DeFi) platforms rather than liquidating assets.
Adding to the outflow pressure, Ethereum exchange-traded funds (ETFs) saw substantial institutional withdrawals totaling $129 million. This highlights the broader market’s cautious sentiment amidst the downturn.
Despite the negative price action and capital flight, Ethereum demonstrated resilience in network usage. Daily on-chain transactions surged to 1.7 million, indicating sustained user activity and underlying network strength during a period of market turbulence.
Collectively, the market activity underscores a shift in investor behavior and trading strategies. While capital is migrating away from exchanges and funds, robust transaction volume points to continued utility even during heightened volatility.