Ethereum News Today: Ethereum’s Steep Decline Ignites Discussion: Immediate Challenges or Strong Long-Term Outlook?

Over the past 24 hours, Ethereum's value dropped by 3.46% to $3,417.77, marking its steepest one-day loss since November 4, 2025. This decline occurred as centralized exchanges (CEX) saw a net withdrawal of 184,700 ETH, according to

. The sell-off has been accompanied by broader market unease and significant institutional withdrawals from ETFs. While some analysts question whether Ethereum's long-term bullish outlook is still valid, others remain optimistic, as highlighted by .

This recent downturn follows Ethereum's record high of $4,950 reached in August 2025, with the token now trading 31% below that level. Institutional involvement appears to be waning, as ETF inflows and corporate staking reserves have both slowed. Data shows that since August, ETFs and companies staking ETH have reduced their holdings by more than 200,000 ETH, with average daily net outflows of $250 million in recent weeks, according to

. These outflows have picked up pace since October 28, continuing for six straight days as of now.

Despite short-term challenges, Ethereum's $200 billion tokenized asset ecosystem continues to inspire confidence among analysts regarding its future price prospects. Platforms such as

, Centrifuge, and Maple are fueling demand by providing 4–6% yields on tokenized U.S. Treasuries and secured lending products, as mentioned in . Moreover, the amount of ETH held on exchanges has dropped to its lowest point in two years, with Binance's ETH reserves falling sharply since mid-2025. This shrinking exchange supply suggests that coins are being moved into cold storage or long-term holdings, a trend often linked to accumulation, as reported by .

The wider cryptocurrency market has shown mixed signals. Binance Alpha, a segment within Binance, jumped 7.69% over the past week, outperforming the broader market's 1.78% rise. This surge was driven by airdrop-related activity, including projects like Planck Network and Play , which delivered triple-digit returns to early adopters, as outlined by . In contrast, Ethereum has struggled, with its price falling 11.44% so far this month and remaining 31% below its August peak, as noted by .

Short-term headwinds persist, as Ethereum ETFs saw $127 million in outflows on October 23, primarily from Fidelity and BlackRock, according to

. At the same time, Bitcoin's market share has climbed to 59.25%, its highest point this year, putting additional pressure on alternative coins. The CMC Fear & Greed Index currently stands at 32/100, reflecting a high level of caution in the market, as reported by .

Looking further ahead, optimism for Ethereum is rooted in its structural strengths. Analysts at Token Terminal believe that the $430 billion in tokenized assets on Ethereum provides a solid foundation for its market cap, tying its value to on-chain utility, as stated in

. 10x Research also pointed out that USDT liquidity on Ethereum has doubled since the U.S. election, indicating renewed interest in the network for yield and liquidity, as reported by . Institutional staking, supported by providers like P2P Validator, is further reinforcing Ethereum's position in the digital asset landscape, as reported by .

Although the short-term outlook is still unclear, some analysts believe Ethereum could rebound if regulatory conditions improve and risk appetite returns. Key resistance levels to monitor are $3,650 and $3,920, with a potential breakout in 2026 depending on continued liquidity inflows and increased staking, as noted by

. For now, the market remains cautious, with investors weighing short-term bearish factors against a more optimistic long-term perspective.