## Ethereum in Q4: Biggest Drop in Years, Institutions Remain Divided

Ethereum is experiencing a challenging period in the fourth quarter, recording a 28.8% decline over the past three months – the worst performance for this period since 2019. The current ETH price is $3,020, with a 24-hour volatility of -6.12%, reflecting a significant capital outflow from investor positions.

The main pressure factor has been outflows from US ETFs. According to SoSoValue data, last month spot ETH funds experienced a record net outflow of $1.42 billion. By the end of December, investment products had already recorded net withdrawals of $612.6 million – the second-largest sell-off in history. This institutional retreat from Ethereum exposure has direct consequences for the entire altcoin sector.

## Large Investor Positions: Selling or Consolidation?

Not only institutional flows influence market dynamics. On-chain data from Lookonchain reveal significant capital movements among major players. An investor known as 1011short has just transferred 112,894 ETH (worth approximately $332 million) to the Binance platform, traditionally signaling upcoming selling pressure against the exchange’s high liquidity.

Meanwhile, 1011short manages three active short positions in the market, covering Bitcoin (BTC, current price $90,320, volatility -2.94%), Ethereum, and Solana (SOL, current price $127.83, volatility -4.63%). The total value of these positions amounts to $749 million, though the investor is currently facing an unrealized loss of about $49 million at current market prices.

## Contrast: Institutions Accumulating Ethereum

While some major players are reducing their exposure, other institutional entities are doing the opposite. The investment firm Trend Research has been actively accumulating Ethereum over the past month. On December 29, it raised an additional billion dollars in stablecoins from the lending protocol Aave (AAVE, currently trading at $156.44, with a volatility of -4.92%), to strengthen its position.

Trend Research now controls 601,074 ETH worth $1.8 billion – a significant position indicating long-term confidence in Ethereum’s prospects despite current market turbulence.

## Market Revenue in a Macroeconomic Context

The overall cryptocurrency market has lost over one trillion dollars in value over these three months. Ethereum’s decline is not an isolated phenomenon but reflects a broader shift in investor sentiment, especially among institutional players. Negative impulses from US markets are a central element of this decline.

Despite current challenges, some analysts maintain a moderate optimism, signaling long-term price targets around $8,500 for Ethereum. Such projections suggest that current levels could present a potential opportunity for long-term investors, although short-term volatility remains substantial.