- Ethereum faces pressure near $3,000 as Arthur Hayes trims holdings and shifts strategy.
- ETF outflows top $600M in a week, led by heavy redemptions from BlackRock’s ETHA fund.
- Hayes rotates into DeFi, buying 1.22M ENA as liquidity conditions shift in crypto markets.
Ethereum is revisiting the spotlight, with one of the biggest traders repositioning his position. With ETH hovering near the $3,000 price, Arthur Hayes has started selling Ethereum. The change comes at a time when the markets are becoming stagnant.
It was publicly confirmed by Arthur Hayes, who is the co-founder of BitMEX. He said that he was moving out of Ethereum and high-quality decentralized finance tokens. Hayes explained that the action was necessary to boost the liquidity of fiat currency. To him, there is less preference in the liquidity cycles in big layer-one assets than in DeFi. His commentary was quickly piling up around trading desks.
Ethereum Faces On-Chain Selling as ETF Outflows Accelerate
On-chain data supports his statement. On December 19, 508.647 ETH was sold by Hayes to Galaxy Digital. At the time, it was a deal worth some $1.5 million. After few days, he transferred another 680 ETH, which is about $2 million. The second transfer was sold and rotated capital, according to Lookonchain.
Seven consecutive days of net outflows have been registered in Spot Ethereum exchange-traded funds. CryptoQuant data shows that there were more than $600 million in net outflows this week. It is among the largest withdrawals of Ethereum ETFs that took place in a week.
The biggest such redemptions were in ETHA of BlackRock. The fund sold out around $467 million in the period. The amount of the outflows of Fidelity FETH was about $35 million. Grayscale ETHE made nearly $49 million in withdrawals. Put together, the facts show that institutional demand is declining.
Source: CryptoQuant
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Price Support at Risk as Hayes Increases DeFi Positions
Analyst Ted Pillows said that Ethereum has to maintain current positions. A decline below the $3,000 price level may lead to a fall to the $2,700 to $2,800 levels. Any change in position past $3,200 can change the mood.
Source: Ted Pillow
Lookonchain data also revealed that he recently purchased 1.22 million ENA. The acquisition validates the active rotation to DeFi. It is also a sign of willingness to accept increased volatility.
This plan isolates merchants. There is an opinion that the tokens of DeFi are usually effective in the periods of liquidity expansions. Others warn that the losses can increase very quickly in case the situation alters. Volatility is one of the key risks.
Hayes has not shifted his opinion about Ethereum even after the sales. He has mentioned it several times as crypto market infrastructure. His move is limited to a tactic and not an ideology.
As the short-term pressure is on the rise, long-term opinions are also polarized. Bitwise’s asset manager is hopeful that Ethereum will reach its new high in 2026.
Also Read: Ethereum Locks Hegota Upgrade After Glamsterdam, Strengthening Its 2026 Vision
