Ethereum dropped below $2,500 on Friday, declining nearly 3% as institutional withdrawals, rising exchange balances, and broader economic pressures weighed on demand.
The third consecutive daily decline came alongside elevated oil prices and US Treasury yields. ETH also slipped beneath its 50-day exponential moving average, weakening its near-term technical structure.
Treasury yields and Fed outlook weigh on Ethereum
ETH briefly dropped to the $2,424 level on Thursday before slightly recovering to now trade around $2,490.
US government bond yields climbed sharply before easing on Thursday. The 10-year Treasury yield reached a 24-year high of 5.35%, while the 30-year yield rose above 5.70%.
Higher yields increase the appeal of interest-bearing assets and can reduce appetite for riskier investments such as cryptocurrencies.
Yields subsequently eased to 5.23% and 5.60%, after President Donald Trump said the US would not attack Iran before the November 3 midterm elections.
Meanwhile, the Federal Reserve’s September meeting minutes, released Wednesday, showed that officials expected another interest-rate increase before year-end without specifying its timing.
Furthermore, US spot Ethereum ETFs recorded $160.7 million and $72.54 million in net withdrawals on Wednesday and Thursday.
The funds have now experienced eight consecutive sessions of net outflows totaling approximately $624 million, with no positive daily flows recorded so far this week.
The sustained withdrawals suggest weaker demand through regulated investment products at a time when ETH is already facing selling pressure elsewhere in the market.
Ethereum balances held on exchanges have increased by roughly 132,000 ETH since Monday and approximately 233,000 ETH over the past two weeks, according to CryptoQuant.
Rising exchange reserves can indicate that more coins are available for sale, although deposits do not establish that those assets have been sold.
Wallet balance data also points to distribution across several holder groups.
Addresses holding between 10,000 and 100,000 ETH reduced their combined balances by approximately 151,000 ETH over two weeks.
The cohorts holding 1,000–10,000 ETH and 100–1,000 ETH collectively reduced their balances by roughly 276,000 ETH.
These categories describe wallet sizes rather than definitively identifying individual retail or institutional investors.
Ethereum recorded $344.85 million in futures liquidations over the past 24 hours, leading the crypto market, according to CoinGlass.
Long positions accounted for $283.5 million, while short liquidations totaled $61.32 million.
The concentration of losses among longs shows that traders positioned for higher prices bore most of the impact as ETH’s decline accelerated.
ETH price outlook: Bulls look to defend the $2,355 support
Ethereum has fallen below its 20-day and 50-day EMAs at $2,631 and $2,502, leaving a neutral-to-bearish near-term outlook.
The next major support zone lies between the horizontal level at $2,355 and the 100-day EMA at $2,338. A daily close beneath that cluster could bring $2,204 into view, followed by $1,972.
Momentum remains weak. The 14-day Relative Strength Index stands near 40, while the Stochastic oscillator around 18 signals oversold conditions.
Those readings could slow the decline but do not guarantee a rebound.
A recovery would first encounter the 50-day EMA near $2,502, followed by horizontal resistance at $2,548.
Above that, the $2,631-$2,636 area forms a broader resistance zone, with $2,781 the next major hurdle.
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