ETF fund withdrawals and deep lock-in, is no one willing to buy ETH on dips? As ETF funds continue to exit and investors become increasingly trapped, many are hesitant to purchase ETH during price dips, fearing further declines and locking in losses.

As investors withdraw大量 funds from the US Ethereum spot ETF, the world’s second-largest cryptocurrency is under significant price pressure and confidence crisis. Analyst James Seyffart pointed out that even when prices fall sharply, there is almost no sign of “buying the dip” in the market, reflecting extreme lack of confidence among institutional and retail investors in the short-term outlook for Ethereum.

ETF funds continue to flow out, investor sentiment remains冷淡

According to Bloomberg data, since the market crash in early October, US Ethereum spot ETFs have seen outflows of up to $3.3 billion. Just this year, outflows exceeded $500 million, bringing total assets under management below $13 billion, hitting a new low since July. Analyst James Seyffart noted that even with significant price declines, there is little evidence of “buying the dip,” indicating that institutional and retail investors lack confidence in Ethereum’s short-term prospects, and the market is in a typical capital withdrawal phase.

Cost and market price are seriously disconnected, paper losses exert heavy pressure

Currently, Ethereum’s trading price is around $2,100, down nearly 60% from its all-time high. Notably, the average cost basis for Ethereum ETF holders is approximately $3,500 per coin. This means most investors entering the market through compliant channels are in deep unrealized losses. This significant gap between cost and market price not only suppresses market liquidity but also causes investors to prefer stop-loss selling during volatility rather than adding positions, creating a negative cycle that drives prices further down.

Overall crypto market weakens, liquidity tightens

Ethereum’s slump is not an isolated event but a reflection of the overall deteriorating sentiment in the cryptocurrency market. While risk assets like US stocks remain resilient, confidence in crypto assets has not recovered since the large-scale liquidation in October. Market research firm Kaiko analyzed that the crypto market is in an environment of shrinking total market cap, rising volatility, and reduced risk appetite. As liquidity tightens, funds are primarily withdrawing from highly speculative digital assets, causing Ethereum and Bitcoin to enter long-term correction phases.

Correlated decline with Bitcoin, risk asset attributes highlighted

Although Bitcoin’s price movements are often the headline focus, Ethereum, as the second-largest coin, tends to be more damaging during market downturns. Ethereum’s price has fallen 62% from its 2025 high, while Bitcoin has declined 50% from its peak. When Bitcoin drops due to risk aversion or liquidity pressures, smaller competing coins often crash along with it. The current market trend shows that cryptocurrencies have decoupled from traditional risk assets like tech stocks, with investors viewing cryptocurrencies as highly speculative assets. In the current conservative capital environment, Ethereum is unlikely to gain the momentum needed for a short-term rebound.

(ETH down but BitMine continues buying, liquidation price seems close?)

This article on ETF fund withdrawals and deep trapping, no one is willing to buy ETH on dips? Originally published on Chain News ABMedia.