Ethereum Holds Near $2,700 Amid Institutional Outflows and Derivatives Selling

Ethereum (ETH) is facing institutional selling pressure, yet its price remains near $2,700. US spot ETH exchange-traded funds (ETFs) recorded $206 million in outflows over five consecutive sessions, with $50.76 million exiting on October 5 alone. This marks a significant shift from the $17.1 million inflow on September 28, reducing cumulative net inflows to about $13.75 billion since launch.

Despite the outflows, Ethereum’s broader price structure has held steady. Blockchain analytics firm Santiment noted a surge in Ethereum’s Age Consumed metric to 580 million token-days on September 30, indicating that long-dormant coins were moving. However, exchange balances barely changed, suggesting the activity may have been due to custody transfers or staking rather than widespread selling by long-term holders.

Derivatives markets are showing mixed signals. Ethereum’s Estimated Leverage Ratio has fallen to 0.66, its lowest in seven months, indicating reduced appetite for heavily leveraged positions. On Binance, ETH open interest stands near $3.3 billion, up 43% since August 6. Meanwhile, Cumulative Net Taker Volume has plummeted to -$1.36 billion, its weakest reading since August 6, reflecting aggressive selling pressure.

Despite the bearish derivatives activity, Ethereum’s price remains 44% above its August 6 level, suggesting buyers are absorbing the sell orders. A short squeeze could emerge if funding rates turn persistently negative while ETH holds its range, increasing the potential for short sellers to cover their positions.