Ethereum Price Prediction: Can ETH Recover After ETF Outflows?

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Ethereum (ETH) price has suffered significant bearish sentiment in the past four months amid heightened midterm market uncertainty triggered by the U.S. tariff wars. The large-cap altcoin, with a fully diluted valuation of about $224 billion and a 24-hour average trading volume of $25 billion, has dropped more than 54 percent since December 2024.

Ethereum Whales Cash Out

The Ethereum network has experienced a huge cash outflow in the past few weeks amid leadership change from the Ethereum Foundation. The U.S. spot Ether ETFs have recorded a net cash outflow of nearly $200 million in the past three weeks. 

Interestingly, even BlackRock’s ETHA has been bleeding, whereby it recorded a net cash outflow of $11 million on Tuesday.

According to on-chain data analytics from Coinglass, the Bitcoin miner reserves have been declining exponentially in the past years to hover about 1.92 million. Meanwhile, the overall supply of Ether on centralized exchanges increased by about 81,397 ETH units in the past 24 hours to about 15.01 million coins.

Heavy Liquidation of ETH Whale at Hyperliquid Exchange 

Earlier on Wednesday, an Ether whale opened a long position of  175,179 ETH, worth about $335.6 million, with 50x leverage on the Hyperliquid trading platform. According to on-chain data, the whale investor actively closed 14,945 ETH positions, worth about $28.7 million. 

As a result, the whale investors left 160,234 ETH, worth around $306.8 million, to be liquidated, hence making a profit of $1.86M, which caused Hyperliquidity Provider(HLP) to lose $4 million in the past 24 hours.

The notable loss on Hyperliquid raised alarm over the impact of high leverage causing liquidity drain. Furthermore, the entrance of a couple of similar traders could easily drain the liquidity for Hyperliquid pools.

In response, Hyperliquid announced the reduction of Bitcoin and Ether leverage from 50x to 40x and 25x respectively.

Ether Price Prediction Model

Ethereum price has suffered bearish sentiment against Bitcoin for the past years and is currently retesting the lowest level since May 2020. Despite being the DeFi leader, with more than $45 billion in total value locked (TVL) and over $122 billion in stablecoins market cap, Ethereum price has already singled bearish sentiment in the macro outlook.

After closing below a crucial support level of around $2.1k in the last two weeks, Ethereum’s price faces further midterm selloff towards $1.5k unless a V-shaped reversal happens.