Ethereum Price Drops as Institutional Demand Decreases

Ethereum's price volatility continues to be affected by external factors, including the Federal Reserve's decision. The recent hawkish stance and higher 2026 inflation outlook have lifted risk premiums for crypto, resulting in Ethereum liquidations worth $98 million.

Institutional demand for Ethereum has decreased due to net outflows of $234 million from US spot ETFs over three consecutive sessions. This reduction in dollar-based institutional demand is a significant factor contributing to the current price trend.