Ethereum’s dealing with some short-term selling pressure right now, but the long-term outlook remains pretty bullish according to multiple indicators. The sentiment around ETH has been pretty muted over the past two weeks following that brutal mass liquidation event on October 10th.
Derivatives data shows open interest sitting around $19-20 billion, down from $27 billion before the liquidation. That’s actually a relatively deleveraged market, which typically signals bearishness in the near term. Funding rates have been barely positive and even dipped negative briefly over the past couple weeks.
What’s concerning is the exchange of NetFlow data. On October 15th, the 7-day moving average showed massive outflows of -31k ETH, meaning heavy accumulation. But now it’s flipped to over +3k inflows, highlighting selling pressure even as prices decline. Until that trend reverses, traders should watch out for further downside.
There’s a silver lining, though. Ethereum’s still trading well above its fundamental support level, the realized price at $2,300. Drops below that usually signal capitulation and bear markets. The MVRV ratio sits at 1.67, meaning holders are averaging 67% profits right now.
So holders are profitable but not overheated, and the market isn’t euphoric. That’s actually a healthy combination for bulls in the medium term. More gains could follow this consolidation phase, especially with news that T. Rowe Price’s new multi-coin ETF will likely include Ethereum.
Conclusion
Ethereum faces short-term selling pressure with exchange inflows rising, but MVRV at 1.67 and trading above the $2,300 realized price suggest a healthy long-term bullish outlook remains intact.
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