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ETH Plummets: Investors Flee as ETFs See Major Outflows
21 Nov
Summary
- Ethereum price dropped near $2,800, marking significant weekly losses.
- Ethereum ETFs experienced substantial investor outflows totaling over $1.5 billion.
- Corporate treasuries are selling ETH to reduce discounts to Net Asset Value.
Ethereum's value has experienced a significant downturn, with its price hovering near $2,800 following a substantial 15.3% decrease over the past week. This slide has pushed ETH to its lowest levels since July 2025. A key factor contributing to this decline is the substantial investor outflow from Ethereum ETFs, which has exceeded $1.5 billion in November alone, representing the largest monthly withdrawal to date.
Institutional investors and corporate treasuries are reportedly contributing to the selling pressure. Firms such as FG Nexus are liquidating ETH holdings, converting them into cash to fund share buyback programs and address discounts to their Net Asset Value. This strategic selling, driven by fiduciary duties, aims to enhance shareholder value, despite ongoing confidence in Ethereum's underlying utility from other entities like GameSquare.
The $3,000 price level is viewed as a critical benchmark by traders, reflecting investor sentiment on regulatory progress and institutional adoption. While some traders anticipate a potential rebound to $3,700 by year-end if $3,000 holds, market probabilities indicate a 70% chance of ETH falling to $2,750 before the year concludes, signaling continued uncertainty in the market.
