Ethereum’s price has weakened sharply this month, slipping to $4,330 on September 9 — a 13% drop from its August peak. Analysts warn this decline could deepen as BlackRock continues to sell Ethereum and as spot ETH ETFs register consistent outflows.
On-chain data shows that BlackRock transferred ETH worth $312.5 million to Coinbase earlier this week, a move that typically signals selling intent. This coincides with heavy ETF outflows, with SoSoValue reporting $446 million in withdrawals on Friday alone. Ethereum ETFs have now experienced five consecutive days of outflows, cutting cumulative inflows to $12.7 billion. The iShares Ethereum Trust saw $309 million in redemptions on Friday, suggesting BlackRock’s moves may be tied to broader investor withdrawals.
Still, ETF outflows are not unusual. For example, funds lost $237 million in late August but rebounded with inflows exceeding $1 billion the following week. Institutional demand remains strong, with treasury firms like BitMine Immersion accumulating more than $9 billion worth of ETH, making it the largest corporate holder, while SharpLink owns over 797,000 ETH valued at $3.4 billion.
Fundamentally, Ethereum’s network continues to expand. Stablecoin assets on the blockchain now exceed $154 billion, far surpassing rival ecosystems.
From a technical perspective, Ethereum has broken below the ascending channel formed earlier this year, signaling increased bearish pressure. The token has fallen under its 25-day EMA, while the RSI has retreated from an overbought 87 in July to 51, with further downside possible before a reversal. Additionally, the MACD indicator has formed a bearish crossover, pointing toward a potential decline toward the $3,750 support level based on Murrey Math Lines.
However, this bearish outlook would be invalidated if ETH manages to break above its year-to-date high of $4,955.
