Ethereum (ETH) has given back nearly all of the gains it posted earlier this month after renewed selling pressure swept across the market.
A fresh weekly sell signal has also raised concerns that another sharp corrective phase, similar to prior declines, may be developing for the second-largest cryptocurrency.
Three Major ETH Downside Targets
Crypto analyst Ali Martinez identified a new weekly TD Sequential sell signal for Ethereum. This indicator has correctly anticipated several significant ETH moves in the past year, including buy signals on April 14 and June 16, 2025, which preceded rallies of roughly 87% and 134%, respectively. Martinez also referenced a sell signal on August 25, 2025, which aligned with a subsequent 63% correction.
According to the analyst, if selling intensifies, Ethereum could first test short-term support near $1,900. Further downside could push ETH toward mid-term support at approximately $1,565 and a longer-term target close to $1,090. Martinez added that the $1,071 area, near the lower edge of a broader channel, looks like a strong potential buying zone should the decline reach that level.
On-chain analytics firm Santiment reported that Ethereum saw its highest network realized profits in three weeks as traders booked nearly $74.58 million in gains despite ETH’s recent pullback. The spike in realized profits was mainly driven by holders who accumulated Ethereum earlier this year at lower prices and remain in profit even after the downturn, prompting some to take profits during the correction.
Santiment noted that ETH traded below $2,000 for much of February and March, a period when some investors continued to accumulate amid broader market uncertainty and geopolitical concerns. Many of those wallets are still sitting on gains and are now selling into strength. The platform also pointed out increased on-chain transaction activity and price compression around the $2,240 level on four-hour charts, which suggests heightened distribution activity.
Higher transaction volumes can drive larger totals of realized profits across the network, even when individual gains are modest, increasing the likelihood of sustained selling pressure during corrections.
Four Straight Days of Withdrawals
Meanwhile, US spot Ethereum ETFs have experienced consecutive daily outflows over the past several days. Data compiled by SoSoValue shows these funds recorded four straight days of withdrawals this week. The ETFs logged $17 million in outflows on May 11, followed by a sharp $130.6 million withdrawal on May 12—the largest single-day outflow since March.
Outflows continued with $36.3 million on May 13 and a further $5.65 million on May 14, signaling persistent capital rotation out of these passive investment vehicles amid the recent market weakness.