21-6-2025 – Ethereum’s price has slumped to $2,442.32, a bruising 4% drop in the past 24 hours, with the cryptocurrency oscillating between a low of $2,389.71 and a high of $2,556.98. This downward spiral, marked by intensifying bearish forces, paints a sobering picture for the world’s second-largest digital asset, as market dynamics shift under mounting pressure from liquidations, dormant wallet activity, and faltering demand.
A surge in Ethereum’s “liveliness” metric, reaching an all-time high of 0.69 according to Glassnode, signals a troubling trend: long-dormant holders are stirring, transferring coins to exchanges at an unprecedented rate. Santiment’s data reveals a stark imbalance, with ETH flooding into centralised platforms far outpacing outflows, a move often prelude to sales. This activity, coupled with $170 million in liquidations—$157 million of which targeted long positions—has deepened the market’s unease, threatening further short-term declines unless buying momentum revives.
Shrinking capital inflows and falling on-chain holdings
The Ethereum ecosystem is also grappling with dwindling capital inflows and weak demand. DefiLlama reports a sharp contraction in the Ethereum chain’s holdings, plummeting from 27.99 million ETH on 6 May to roughly 25 million ETH in recent weeks. This erosion, combined with bearish technical signals, paints a grim outlook. Short-term moving averages, including the 10-day to 30-day EMAs and SMAs, flash sell signals, with Ethereum languishing below the critical $2,500 resistance threshold. Should selling pressure persist, analysts warn the price could slide to $2,185 or even revisit its May lows. Yet, a resurgence in demand could reverse this trajectory, potentially propelling ETH towards $3,000 if it breaches the $2,800–$2,850 resistance zone within the next month—a feat that would require robust fundamentals and renewed investor confidence.
Ethereum ETFs record $11.3M net outflows
Adding to the strain, Ethereum exchange-traded funds (ETFs) recorded a net outflow of $11.3 million on 20 June, driven primarily by a $19.7 million withdrawal from ETHA, though ETH and ETHV saw modest inflows of $6.6 million and $1.8 million, respectively, per Farside Investors. Other ETFs remained dormant, reflecting cautious investor sentiment. The broader market context remains precarious, with macro conditions posing a risk of further declines to $2,280 if sentiment sours. However, a stabilising market and renewed ETF inflows could yet spark a recovery, offering a glimmer of hope for Ethereum’s battered bulls. For now, the cryptocurrency teeters on a knife-edge, its fate hinging on the interplay of trading volumes, investor resolve, and global economic currents.
