Ethereum Price Plunges 22% Amid Capital Outflow and Regulatory Pressures

The cryptocurrency market is undergoing significant structural adjustments, with Ethereum (ETH) experiencing a deep correction driven by capital flow dynamics and expectations.

The price drop of over 22% can be attributed to several factors, including the withdrawal of liquidity, net redemptions in spot ETFs, and concentrated selling of early holdings. The Ethereum Foundation has shifted its financial strategy towards a defensive posture, adopting a 'five-year contraction' plan to ensure sustainability without jeopardizing independence.

Vitalik Buterin, co-founder of Ethereum, sold over 8,800 ETH this month, cashing out approximately $18.45 million. This significant reduction by core management is typically viewed as a major negative signal, further exacerbating market panic.