Selling pressure took a toll on Ethereum as on-chain activity fell to a seven-month low.

Ethereum (ETH)’s recent decline is starting to reflect more than just short-term price volatility. With ETH trading below $3,000, concerns about weakening demand are strengthening due to excessive liquidation, reduced network activity, and ongoing institutional outflows.

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So far, the price has moved above key support levels, but several indicators suggest that selling pressure remains firm and the market is maintaining a cautious holding pattern.

Over the past week, Ethereum has fallen about 12%, underperforming several major assets during a broader market correction. The decline briefly pushed ETH into the $2,850-$2,900 area and led to one of the largest liquidation events in recent months, liquidations of over $200 million.

ETH's price trends slightly upwards on the daily chart. Source: ETHUSD on Tradingview

Network activity and Ethereum ETF flows indicate declining participation.

In addition to price action, Ethereum’s on-chain indicators are showing signs of cooling participation.

Weekly active addresses fell from about 440,000 at the beginning of the quarter to about 324,000 in December, the lowest level since May. The number of transactions also fell to a yearly low, indicating a decline in participation from both retail and institutional users.

At the same time, the US spot Ethereum ETF continues to see consistent outflows. Data from SoSoValue shows more than $224 million in ETH ETF exits over several consecutive sessions, led by BlackRock’s ETHA fund.

Since mid-December, total net assets in U.S. spot ETH ETFs have fallen by more than $3 billion, suggesting institutions are reducing exposure rather than adding to positions. The Coinbase Premium Index turning negative supports the view that US-based selling pressure is back.

Whale sales and technical structures keep risks lower.

Large holders added to the short-term pressure. On-chain data shows that more than 28,500 ETH were sold from a handful of whale wallets within a short period of time, including transactions with a total value exceeding $80 million.

Despite this distribution, ETH has so far avoided a sharp collapse, with buyers repeatedly defending levels near $2,880.

From a technical perspective, Ethereum is maintaining a medium-term downtrend. Prices continue to trade below key moving averages, while momentum indicators such as RSI remain below neutral levels.

Related Read: Bitcoin ‘Death Cross’ Panic Return: History Says It’s a Late Sign

Resistance is centered between $3,050 and $3,120, and failure to reclaim that area leaves ETH vulnerable to another test of $2,800. If this support is broken, analysts point to the $2,400-$2,600 range as the next area of ​​interest.

Cover image by ChatGPT, ETHUSD chart by Tradingview