Ethereum bears keep selling but ETH stays near $2,700 as US spot ETFs record $206 million in outflows

Institutional interest in Ethereum is softening concurrently with derivatives metrics showing aggressive selling from traders, though the broader price action has not yet broken down.

According to data from SoSoValue, US spot Ethereum exchange-traded funds registered $50.76 million in net outflows on Oct. 5. This pushed their ongoing losing streak to five consecutive sessions. Since Sept. 29, these investment products have experienced $205.88 million in withdrawals, bringing total cumulative net inflows down to approximately $13.75 billion.

This negative sequence came immediately after an inflow of $17.1 million on Sept. 28. It has unfolded alongside ETH trading near $2,711, causing a retreat in one of the market’s primary catalysts for incremental demand.

Even so, this selling pressure has not impacted all segments of Ethereum’s investor community evenly.

Onchain analytics platform Santiment reported that Ethereum’s Age Consumed metric jumped to 580 million token-days on Sept. 30. This figure is roughly nine times the average seen on September weekdays and marks the highest measurement since June 2. The indicator monitors previously inactive coins shifting onchain, factoring in the duration they remained untouched.

While substantial spikes can point to long-term holders shifting assets and occasionally preparing to liquidate, aggregate exchange balances showed virtually no change across Sept. 30 and Oct. 1.

The amount of Ethereum stored on trading platforms grew by just 18,000 ETH on Sept. 30, followed by a drop of about 21,000 ETH the next day, measured against a baseline of roughly 5.9 million ETH sitting on exchanges. By comparison, when Age Consumed hit a higher spike on June 2, exchange balances grew by in excess of 140,000 ETH.

This discrepancy suggests the September activity may have stemmed from custody transfers, staking operations, or wallet restructuring rather than widespread liquidation by legacy holders.

ETH derivatives traders lean bearish without forcing a breakdown

More immediate strain is visible within the derivatives markets, though the data points there remain mixed as well.

Figures from CryptoQuant reveal that Ethereum’s Estimated Leverage Ratio dropped to 0.66—a seven-month low—signifying that open derivatives exposure has decreased relative to the ETH reserves maintained on exchanges. The metric sat close to 0.68 on Binance and 0.64 on OKX following a downward trend over the prior weeks.

CryptoQuant analyst Arab Chain views this drop as a sign of reduced demand for heavily leveraged positions while ETH hovers near $2,700, which could alleviate liquidation risks.

Conversely, Binance ETH open interest stays close to $3.3 billion, marking a roughly 43% climb from roughly $2.3 billion on Aug. 6, based on CryptoQuant records. At the same time, the Cumulative Net Taker Volume (CVD) has moved sharply in the opposite direction.

Binance ETH CVD plummeted from $1.94 billion on Aug. 21 down to -$1.36 billion on Oct. 5. This $3.30 billion reversal represents its lowest level since Aug. 6. The metric measures the balance between aggressive market buyers and sellers, with the negative value demonstrating that sellers are increasingly crossing the spread to complete trades.

Binance’s Ethereum Net Taker Volume/Open Interest (Source: CryptoQuant)

Despite this, Ethereum stays roughly 44% higher than its Aug. 6 valuation, implying that the surge in aggressive selling has not erased the wider price gains.

This divergence is further supported by the correlation between CVD and open interest. While CVD continues posting lower lows, open interest lows have generally trended upward—a trend that aligns with substantial outstanding derivatives exposure as aggressive sellers command a larger share of order flow.

This dynamic can turn positive if ETH successfully absorbs the incoming supply. Heavy taker selling coupled with stable prices suggests buyers are stepping in to absorb aggressive sell orders.

A short squeeze remains a possibility dependent on conditions, with funding rates offering further insight into market positioning. Should funding rates turn consistently negative while ETH holds its trading range, short sellers would have to continuously pay long positions to maintain their bets, increasing the odds that short covering could become an additional catalyst for demand.

At present, three competing forces are pulling the market in separate directions: ETF investors are pulling money out, dormant coins are shifting while total exchange balances stay steady, and derivatives traders are selling aggressively while retaining heavy exposure.

The next shift in this equilibrium could originate from either direction.

If ETF redemptions persist alongside a notable spike in exchange balances, selling pressure could expand beyond financial instruments. However, if exchange reserves remain stable and ETH continues to absorb negative derivatives volume, traders holding short positions could find themselves vulnerable to any resurgence in institutional demand or changes in funding rates.