Ethereum (ETH)’s recent drop below $2,000 is no longer limited to just the price chart. Capital flows, on-chain data, and technology structures are currently consistent with bearish momentum, supporting concerns that there is room for further decline.
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New ETF outflows and changes in investor behavior are adding pressure to confidence, which is already looking fragile as ETH dips below a key support zone.
ETH's price trends to the downside on the daily chart. Source: ETHUSD on Tradingview
ETF outflows suggest declining appetite among institutional investors
The Ethereum Spot ETF recorded net outflows of $80.79 million on February 5, according to data from SoSoValue.
Fidelity’s FETH accounted for the majority of the funds, with $55.78 million flowing out of the fund in one session. Although the cumulative past inflows into FETH remain at $2.51 billion, the rapid daily outflows highlight new caution among investors.
Not all products have been withdrawn. Grayscale’s Ethereum Mini Trust (ETH) recorded the largest single-day inflow of $7.05 million, followed by Invesco’s QETH with $3.53 million. However, these gains were not enough to offset the widespread sell-off.
The Ethereum Spot ETF currently has total assets of $10.9 billion, which is approximately 4.83% of ETH’s market capitalization. The nonuniform flow regime suggests selective placement rather than widespread accumulation.
Ethereum price structure weakens as support level is lost
Ethereum’s price trend continues to trend downwards, with ETH recently trading below the $2,000 level after briefly falling to $1,750 earlier this week. Analysts tracking higher time frames note that the bear market structure remains intact and no bullish changes have been confirmed on the 4-hour chart.
The previous support near $2,125 has now turned into resistance, and traders are keeping an eye on a possible reaction to the liquidity zones around $2,200 and $2,300. A sustained recovery above $2,345 is widely seen as the minimum requirement to indicate a change in trend.
Until then, the rally is treated as a corrective move within a broader downtrend.
On-chain signals and developer concerns add context
On-chain data shows clear differences between investor cohorts. While mid-sized holders have reduced their exposure during the decline, large wallets have increased their holdings, suggesting accumulation by long-term players amid the downturn.
At the same time, exchange inflows, particularly to Binance, have risen to levels last seen in 2022, often related to distribution and relocation.
Beyond price, Ethereum co-founder Vitalik Buterin recently criticized the lack of innovation among copycat EVM chains, arguing that without deeper technological differentiation, scaling progress risks stalling.
While these comments are not directly relevant to the market, they confirm broader concerns about direction and execution within the ecosystem.
Tradingview ChatGPT, ETHUSD chart cover image
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