Ethereum News Update: Ethereum’s Triple Bottom Faces Threats as ETF Outflows and Low Trading Volume Dampen Breakout Prospects

Ethereum is finding it increasingly difficult to surpass the $4,000 mark as bearish indicators grow stronger. A combination of technical signals, on-chain trends, and broader economic headwinds is casting uncertainty over its short-term prospects. Although a possible triple bottom pattern around $3,750–$3,800 hints at a potential 10% rally, the asset faces a pivotal challenge at the resistance zone of $3,950–$4,000, which also coincides with the 50-period exponential moving average, as highlighted in a Cointelegraph report

. Experts warn that if Ethereum fails to maintain a breakout above this level, the ongoing downtrend could persist, adding to the frustration of traders who have witnessed multiple unsuccessful attempts to reclaim important psychological thresholds.

The triple bottom formation, a well-known reversal signal in technical analysis, depends on steady buying interest at a specific support area. For

, this support has proven resilient as sellers weaken with each decline, while buyers gradually increase their holdings. Blockchain data shows that large holders—wallets containing between 10,000 and 100,000 ETH—are buying the dips more aggressively, now owning close to 28 million ETH. This trend points to institutional faith in Ethereum’s future, even as smaller investors face the threat of forced liquidations, according to that Cointelegraph report. Still, the pattern’s reliability depends on a strong breakout with significant buying volume, which has yet to occur.

At the same time, Ethereum’s network has made notable strides in scalability and cost reduction, with transaction fees dropping to near-record lows of $0.01. Recent protocol upgrades such as Dencun and Pectra have cut Layer 2 (L2) fees by as much as 95% and 50%, respectively, and have shifted transactions off the mainnet to ease congestion, as reported by Cointelegraph

. Daily transaction volume has climbed to 1.6 million, the highest in a month, without causing a spike in fees. These improvements highlight Ethereum’s evolution as a foundation for DeFi and NFTs, though they have not yet led to sustained price gains.

Broader economic forces are also adding complexity. A single-day net outflow of $550 million from Ethereum ETFs, prompted by uncertainty over the Federal Reserve’s rate decisions, has intensified selling pressure. Comments from Fed Chair Jerome Powell suggesting that the latest 25-basis-point rate cut could be the last for 2025 sparked a wave of panic selling, with Ethereum ETFs seeing $81.44 million in withdrawals. Fidelity’s FETH saw the largest outflow at $69.49 million, while Grayscale’s ETH and

products also experienced significant redemptions, according to a Coinpedia report . This movement of capital reflects broader market anxiety and undermines Ethereum’s ability to maintain crucial support zones.

The combination of technical, on-chain, and macroeconomic challenges presents a tough environment for Ethereum. While the triple bottom pattern offers a glimmer of hope for a short-term bounce, the lack of strong buying volume and continued ETF outflows indicate that bearish sentiment still dominates. Bulls will be watching closely to see if Ethereum can break and hold above $3,950—a move that could restore some optimism. Until then, Ethereum’s ability to defend the $4,000 level remains uncertain, with its future trajectory hinging on both network strength and the broader economic backdrop.