Ethereum hodler buying drops 80% as ETF outflows persist

Long-term holder purchases of Ethereum declined about 80% following 17 consecutive trading sessions of net outflows from spot ETFs. The move coincided with an approximate 10% drop in ETH price over the week and roughly $368.6 million in Ethereum long liquidations in a 24-hour period.

Fund flow data show spot Ethereum ETFs recorded net outflows for 17 straight sessions after the last net inflow on May 8. The most recent daily reading reported about $52.94 million leaving the ETFs, reducing total ETF net assets to roughly $9.96 billion.

On-chain analytics from Glassnode indicate a sharp pullback by long-term holders. The hodler net position change, which measures the monthly change in supply held by coins older than 155 days, peaked at 339,222 ETH on June 1 and fell to 68,470 ETH by June 3, an approximate 80% decline.

Futures market data showed funding rates for Ethereum perpetual contracts on Binance reached levels not seen since early 2026. High positive funding rates mean traders in long positions were paying to keep those positions open, a condition that raises the risk of forced liquidations if prices do not rise.

Across exchanges, about $368.63 million in Ethereum long positions were liquidated over 24 hours, part of roughly $1.61 billion wiped from crypto positions in the same window. The forced closures added selling pressure on spot markets and increased price volatility.

Technical trading data show Ethereum slipped below the neckline of an inverted cup-and-handle pattern on June 2. The measured decline from that pattern is about 21%, placing a downside target near $1,550. At the latest readings ETH traded near $1,795. A sustained move below $1,714 would open a path toward $1,550, while reclaiming $1,893 and then $2,004 would be required to erase recent losses. Sell-side trading volume remained steady during the downturn.

The sequence of events observed in early June includes consecutive ETF outflows, a sharp reduction in buying by long-term on-chain holders, elevated futures funding rates, large long liquidations and a price breakdown.