Ethereum prices fell nearly 14% in December, with net outflows from spot exchange-traded funds reaching nearly $545 million during the same period. Will the biggest altcoins extend their losses now that we are nearing confirmation of the bearish pennant pattern?
summary
- Ethereum price fell 14% in December.
- Nearly $545 million was lost from the Spot Ether ETF in December.
- A multi-month bearish pennant pattern is forming on the daily chart.
Ethereum (ETH) price is down nearly 14% from its December high of $3,432, according to data from crypto.news. At the time of writing, it was trading just below $3,000, but if you zoom out on the chart, ETH's losses become even more severe, with it now trading nearly 40% below its all-time high of $4,946.
Ethereum’s decline this month is primarily due to a decline in demand from institutional investors, which is impacting retail investor sentiment around altcoins. Nine spot Ethereum ETFs in the U.S. lost nearly $545 million in December, according to data from SoSoValue, continuing an outflow trend seen in November, when $1.42 billion was lost from investment products.
Demand from derivatives traders has also not shown a strong recovery. According to data from CoinGlass, Ethereum futures open interest has generally hovered in the $35 billion to $40 billion range, well below the $70 billion recorded in August.
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A decline in open interest means traders are unwinding positions and reducing bets on price movements, which can make an asset less attractive as a speculative target.
Ethereum price movement has been further slowed by general risk-off sentiment. This cautious investor stance is largely a reaction to the Federal Reserve's hawkish tilt toward 2026, which moves investors away from risky assets like Ethereum and toward safer alternatives.
At the time of writing, the Crypto Fear and Greed Index also marked 21, suggesting a deep-rooted and extreme fear prevailing in the market throughout December. When this indicator remains very low, cryptocurrencies such as Ethereum tend to remain subdued.
Ethereum price has formed a bearish pennant pattern on the daily chart. Such a pattern is characterized by a sharp decline followed by a brief period of consolidation, and is often viewed as a bearish continuation signal. Once confirmed, traders tend to view it as a sign that the asset's price will fall further.
Ethereum price forms bearish pennant pattern on daily chart — December 31st | Source: crypto.news
Technical indicators are showing a bearish outlook for the altcoin, suggesting a possible collapse in the near future. In particular, the 50-day simple moving average is below the 200-day simple moving average, forming a so-called death cross.
Ethereum price is also trading below its 50-day moving average at the time of writing, meaning there is still downward momentum and buyers are struggling to regain control.
Additionally, the super trend indicator also flashed red after breaking above the current price level. Traders typically interpret this signal as a trigger to sell or short sell the asset, reinforcing the likelihood of further losses down the road.
Given this setup, Ethereum price risks falling towards the November 21st low of $2,622 if a bearish pennant pattern is confirmed, especially since there appears to be no significant support level in between.
Conversely, a break above the immediate psychological resistance at $3,100 could invalidate the bearish setup and open the door for a short-term recovery.
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Disclosure: This article does not represent investment advice. The content and materials published on this page are for educational purposes only.
