Ethereum lost 14% in value, long-term holders are selling.

Ethereum's Decline and Consumer Behavior

Ethereum (ETH) experienced a 14% drop from $3,565 on Thursday to a trading low of $3,060 on Friday, completely erasing the recovery from the previous week.

Recently, American spot Ethereum Exchange-Traded Funds (ETFs) had more than $1.4 billion in net outflows. This situation increased the downward pressure on Ethereum. Additionally, the number of transactions and active addresses generated by network activity has significantly decreased.

The selling pace of long-term holders reached its fastest level since 2021. Analysis firm Glassnode highlighted this situation. On the other hand, the Federal Reserve's tight monetary policies negatively impacted expectations of an interest rate cut in December, leading to weakness in the overall cryptocurrency market.