Ethereum Bleeds For 7 Weeks, Yet Stakers Are Sending A Different Signal

Ethereum (ETH) slipped below $1,700 as spot ETF outflows stretched into a seventh straight week, even as on-chain data pointed to steadier demand beneath the surface.

Key Points:

ETH Price Slides Below $1,700

Spot Ethereum funds logged a seventh straight week of net redemptions, and the token traded near $1,686 at midday, sliding more than 3% over 24 hours. Volume reached $12.36 billion through the session. The price swung between $1,683 and $1,773 before settling near the lower end of that band, with sellers still holding the upper hand into the close.

The latest weekly exit came to roughly $66 million, a far lighter draw than the $255 million pulled in mid-May, which hinted the bleeding had slowed rather than stopped. Earlier tallies put May redemptions at $540.9 million and June withdrawals at $131.5 million, steadily stripping one reliable source of demand from a market that was already short on fresh buyers.

Also Read: Strategy's Bitcoin Machine Keeps Running As Treasury Nears 850K BTC

Traders Watch The Rotation

Futures positioning thinned alongside the funds. Ethereum open interest has collapsed from $33.1 billion in August 2025 to about $10.4 billion, as liquidations and voluntary exits cleared out leveraged bets across the major venues. Analysts still framed the slide as a test of support, not a breakdown.

Michaël van de Poppe said a clear break above 0.0280 Bitcoin (BTC) would push ETH into stronger territory and open the door to a new uptrend. For now, that move has not arrived.

On-chain figures complicated the bearish read, since the validator queue showed about 2.68 million ETH waiting to stake against roughly 223,000 waiting to exit. That imbalance runs opposite to a genuine sell wave. The RSI held near 35, below the neutral line, while Daan Crypto Trades said the token had found support and was trying to bounce back from a prior breakout level.

The split fed a wider rotation theme across crypto funds, as money kept favoring smaller products even while the majors leaked capital week after week. XRP (XRP) inflows ran for an eighth straight week, Solana (SOL) funds held roughly $836 million in net assets, and Hyperliquid (HYPE) vehicles drew about $183 million since their May launch.

ETF Bleed Loses Steam

The redemption run traces back to mid-May, when Ethereum funds turned from heavy inflows to near-daily withdrawals that erased an earlier spring rally. The token fell roughly 20% during early June and has not reclaimed $2,000 since. With weekly outflows cooling from $255 million to about $66 million, the open question is whether the selling is fading or simply catching its breath.

Read Next: Ethereum Bears Load Up $85M In Shorts As Traders Chase A Rebound