Ethereum price crash: Ethereum tumbled to $2,671, down 5.63% in a single session, hitting fresh multi-month lows. Buyers are struggling to regain momentum, and the market shows persistent weakness. Spot demand is fading, while derivatives activity is climbing, signaling a split in sentiment. $2,852 and $2,945 are critical support levels. A break below them could push ETH toward $2,700 or even $2,550.

Technical charts show a clear downtrend. Ethereum forms lower highs, and every bounce is capped by resistance. $3,017 and $3,373 blocked recent rallies. The Supertrend indicator remains bearish, restricting short-term recovery. Traders see tight price compression, suggesting volatility may spike soon. Any break above $3,017 could offer temporary relief, but failure to reclaim these levels keeps the downtrend intact.

Spot outflows are adding to pressure. Ethereum saw a $223.73 million net outflow, continuing a trend of large withdrawals through the second half of the year. Some sessions exceeded $200 million in net outflows, highlighting weak buying conviction. Traders view these withdrawals as signs of fading interest, and this steady selling aligns with the price struggle near $2,743.

Derivatives data tells a different story. Open interest climbed from$15 billion to over $35 billion, showing strongspeculative activity. Even as prices cooled, OI stayed high, indicating that traders remain active in futures and options. This divergence between falling spot flows and rising derivatives adds complexity, making Ethereum’sshort-term moves unpredictable.

Long-term risks are also emerging. Institutional holders now control over 10% of ETH supply, creating concentration risk. Advances in quantum computing could force Ethereum to update its security assumptions sooner than expected. These structural threats add pressure to an already fragile market, affecting investor confidence.

Ethereum’s recovery depends on defending the$2,852–$2,945support range. A clean rise above$3,017–$3,373could open the door to $3,637 and $3,851. But failing to hold $2,945 risks confirming anew lower low, exposing liquidity zones at $2,700 and $2,550. Traders are watching these levels closely, as any sharp movement could triggerrapid volatility.

If macro pressures persist and network activity remains weak, ETH could slide further toward the $2,000–$2,400 range. Technicals show a declining channel, and any failed rebound near $3,185 may trigger a drop below $2,435, putting $2,000 into play as a likely support zone.

Ethereum is trading below its major moving averages (including the 200-day SMA), with a bearish MACD crossover and a 14-day RSI deep in oversold territory, suggesting the path of least resistance is further downward. Immediate Fibonacci support lies at $2,691.7, near today’s low.

The broader crypto market is feeling the heat. Bitcoin and other tokens also dropped to multi-month lows, causing liquidations of leveraged positions. Spot ETFs for Ethereum and Bitcoin recorded consecutive net outflows, while ETFs for other networks saw inflows. Some companies, like Nasdaq-listed investors, are adding Ethereum to their treasuries despite the decline, but crypto research indicates substantial unrealized losses for many holders.

Ethereum drops below $2,700 – is the crypto facing a long-term slump?

Ethereum has fallen sharply to $2,671.24, losing over 5.6% in a single session. This marks a multi-month low, highlighting persistent weakness in the market. Recent trading patterns show failed rebound attempts, suggesting buyers are struggling to regain control.

The cryptocurrency is now hovering near critical support levels around $2,852 and $2,945. Traders are watching closely to see whether these areas can hold. If Ethereum fails to recover, deeper declines toward $2,700 or even $2,550 are possible.

At the same time, broader market concerns add to the pressure. Spot outflows continue to weigh on ETH’s price, and growing speculative activity in derivatives shows a market that is divided between cautious buyers and aggressive short-term traders.

Even long-term factors are casting shadows. Concentration of holdings among institutional investors and the potential threats from quantum computing introduce additional uncertainty for Ethereum’s future.

Ethereum’s price chart is showing a clear downtrend. On shorter timeframes, such as the 4-hour chart, ETH continues to form lower highs, signaling weakening momentum. Every attempt to bounce back is met with resistance, particularly near $3,017 and $3,373, which have blocked previous rallies.

Technical indicators like the Supertrend remain bearish, meaning short-term recovery attempts are limited. Traders often watch these levels for clues about whether a trend may reverse, but so far, Ethereum has struggled to break through.

Immediate support lies near $2,852, which has held during recent tests. Below that, the critical support zone is $2,945, and falling under this could expose ETH to much lower levels. Analysts note that unless ETH recaptures $3,017 and $3,373, the overall trend remains downward.

The market is also showing signs of compression, where price movements become tighter while volatility is expected to expand. This could lead to sharp swings either up or down, depending on whether buyers step in or selling continues.

Are spot outflows driving Ethereum’s decline?

Ethereum’sspot market is showing persistent selling pressure, which is a major factor behind the recent decline. Over the last several months, large net outflows have been recorded, with some sessions seeing over$200 million withdrawn. On Friday alone, ETH experienced a$223.73 million net outflow, coinciding with the price drop near $2,743.

These steady outflows suggest that investor demand is fading, making it harder for ETH to sustain a rebound. Spot withdrawals often indicate that traders prefer to hold cash or move to other assets, especially when confidence in a short-term recovery is low.

The impact of these outflows is also visible in price action. Rebounds have been weak and short-lived, showing that even small attempts to recover are being met with selling pressure. Traders interpret this as a signal of waning market interest, at least in the near term.

While spot flows are important, they are just one piece of the puzzle. Ethereum’s derivatives markets tell a slightly different story, which can complicate predictions for the short-term trend.

What is happening in Ethereum’s derivatives market – why does open interest matter?

Despite the drop in ETH prices,derivatives activity is on the rise. Open interest (OI) has increased significantly, climbing from below$15 billion to over $35 billion. This suggests more speculative trading, even as spot demand weakens.

High OI during a declining market indicates that traders are taking positions in futures or options, betting on further moves in either direction. While this adds liquidity, it also increases volatility, which can make price swings sharper and less predictable.

The divergence between spot outflows and rising derivatives participation highlights a split in market sentiment. Some traders remain aggressive, trying to profit from short-term price moves, while others are cautious or exiting positions entirely.

For regular investors, this can be a confusing environment. Rising OI often signals that volatility could increase quickly, which means that price swings might become more dramatic in the coming days.