Ether Slips Below $3,100 as ETF Outflows Highlight Shifting Market Sentiment

Ether (ETH) retreated below the $3,100 level on Sunday amid a wider cryptocurrency pullback, dipping to around $3,066 as of 9:36 p.m. UTC. The move marks a 3.4% decline over the past 24 hours and represents the token’s first break under $3,100 since Nov. 4, based on TradingView data. ETH briefly slid under the threshold at about 4 p.m. UTC on Bitstamp, signaling renewed market pressure as digital assets faced increased volatility.

Market analysts attribute part of ether’s recent weakness to sustained outflows from spot ether ETFs. According to Timothy Peterson, investment manager and digital asset researcher at Cane Island Alternative Advisors, ether ETFs have recorded net outflows in four of the last five weeks, amounting to roughly 7% of cost-basis capital. This measure reflects the original capital investors put into the funds, excluding accumulated gains or losses. Rising redemptions relative to this foundational capital often suggest waning conviction among long-term participants rather than routine short-term trading adjustments.

Meanwhile, bitcoin ETFs saw withdrawals of about 4% of their cost-basis capital during the same period—significantly lower than ether’s. Peterson interprets this disparity as a sign that investors currently view ETH as the riskier asset compared to bitcoin. Because cost-basis capital focuses solely on initial investment commitments, it offers a clearer reading of sentiment than typical inflow and outflow figures, which can easily be skewed by short-term fluctuations.

With ether now testing key price levels, traders are watching closely to see whether ETF outflows stabilize or accelerate in the weeks ahead. How ETH behaves around the $3,100 zone—and whether the sentiment divide between ether and bitcoin persists—will likely guide market expectations going into the next trading cycles.