Key Takeaways:
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Long-term investors have been selling 45,000 ETH every day, increasing pressure on the sell side.
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Ether’s 50-week EMA and bear flag breakdown goal $2,500.
Ether (ETH)'s decline toward $3,000 on Friday was preceded by significant outflows from long-term holders, which some analysts say may lead to a deeper price correction.
Long-term owners are leaving
Long-term Ether holders, entities which have held ETH (ETH) for greater than 155 days, have intensified their sell-side activity as the worth fell below key support levels.
Analysts at Glassnode analyzed ETH issued volume by age using a 90-day moving average and said 45,000 ETH value about $140 million leave the wallets of three- to 10-year-old holders each day.
Glassnode wrote:
“This is the best level of spending by experienced investors since February 2021.” Ethereum issued volume by age. Source: Glassnode
This is according to a rise in spot outflows from Ethereum exchange-traded funds (ETF), further depressing the ETH price. According to data from SoSoValue, these investment products recorded net outflows of $259 million on Thursday, marking their worst day since October 10.
This marked the fourth straight day of outflows for Ethereum ETFs as the top of the 43-day government shutdown within the US didn’t revive investor appetite.
A cumulative net outflow of $1.42 billion from Ethereum ETFs since early November suggests strong institutional selling pressure, fueling fears of a deeper correction.
Ethereum on-chain data signals slowing demand
On-chain activity over the past seven days paints a worrying picture. According to DefiLlama, Ethereum continues to guide its competitors, securing around 56% of the market's total value (TVL). However, within the last 30 days, this metric has decreased by 21%.
Even more worrying is the decline in network fees, which reflects the slowing demand for blockspace, adding to Ether's price weakness by around $3,000.
Ethereum fees fell to $27.54 million on Friday, down 42% over the past 30 days. Solana's fees fell by just 9.8%, while the BNB chain's revenue fell by 45%, adding to the market's bearishness.
This could put further pressure on Ether's price in the approaching weeks, especially when coupled with increasing market fear, which has returned to levels last seen throughout the sell-off attributable to U.S. President Donald Trump's tariff announcements in April.
ETH price bear flag targets $2,500
Many analysts are warning that the present downtrend could speed up unless there’s a big upward move, potentially increasing pressure on day traders and retail investors.
“Ethereum is losing the 50-week EMA, a key macroeconomic support,” analyst Bitcoinsensus said in a Friday post, referring to the $3,350 level.
Previous collapses triggered large moves lower, with probably the most recent leading to a 60% decline from $3,400 to $1,380 between late January and early April.
Bitcoinsensus added:
“The trend will remain bearish unless the worth quickly returns to this level.” 
Ether's price motion on the every day timeframe confirmed a bear flag once it fell below $3,450, which coincided with the 200-day SMA and the lower boundary of a bear flag.
The next major support lies on the psychological level of $3,000, which the bulls may have to defend aggressively.
A lack of this level would clear the way in which for a renewed downtrend towards the pattern's measured goal at $2,280, or a 23% decline from current levels.
As Cointelegraph reported, the $3,000 level stays a key support zone for the ETH/USD pair and holding this level is crucial to avoid further losses.
This article doesn’t contain any investment advice or recommendations. Every investment and trading activity involves risks and readers should conduct their very own research when making their decision.
