Ethereum (ETH) concluded December 2025 with a significant price decline and substantial outflows from its spot exchange-traded funds (ETFs). The price of the leading altcoin slumped nearly 14% from its December high of $3,432, trading below $3,000 and standing nearly 40% below its all-time high of $4,946.
The primary driver of the downtrend was waning institutional demand. Data from SoSoValue reveals that the nine U.S. spot Ethereum ETFs experienced net outflows of nearly $545 million for the month, continuing a trend that began in November when $1.42 billion exited these products. Daily flow data showed persistent selling pressure, with a recent session led by BlackRock recording a $9.6 million net outflow.
Technical analysis paints a concerning picture. On the daily chart, Ethereum has formed a bearish pennant pattern, a technical formation often seen as a precursor to further downside. Key indicators support this outlook: the 50-day simple moving average has crossed below the 200-day average (a "death cross"), and the price trades below the 50-day SMA. The Supertrend indicator has also flashed a sell signal. If confirmed, this setup risks a decline toward the November 21 low of $2,622.
Market sentiment has been heavily risk-off, influenced by the Federal Reserve's hawkish monetary policy stance heading into 2026. The Crypto Fear and Greed Index registered a reading of 21, indicating "extreme fear" and suppressing speculative assets like Ethereum. Demand from derivative traders has also weakened, with futures open interest stagnating around $35-$40 billion, far below the $70 billion peak seen in August.
Contrasting this bearish short-term view, a separate analysis of the weekly chart identifies a macro bull flag pattern. This long-term structure suggests Ethereum is in a consolidation phase within a broader uptrend. Analysts note that a confirmed breakout from this pattern could target a long-term price objective near $7,000, framing the current weakness as a potential setup for a future major rally.
