Ethereum Struggles at $4,500 as ETF Outflows Hit $788 Million

- Weak buyer demand, steep ETF outflows, and declining network participation hamper Ethereum's upward momentum. - Analysts warn of potential drops to $3,550 if key support at $4,200 falters. On September 8, 2025, Cointelegraph reported that Ethereum failed to break past the $4,500 resistance level. The cryptocurrency faces mounting market and network challenges that limit its price growth prospects, including waning buyer demand, significant outflows from exchange-traded funds (ETFs), and diminishing network activity. A sharp decline in buyer interest presents a key roadblock, as the spot volume delta indicates net negative buying pressure. Consequently, even during price consolidation, the market lacks the upward momentum to breach the $4,500 level. In addition, spot Ethereum ETFs experienced persistent outflows last week, with data from SoSoValue showing total withdrawals of $787.6 million. Investors pulled $446.8 million from these funds on Friday alone, which underscores their hesitation. The derivatives market shows similar stagnation, as open interest (OI) in Ether futures dropped 18% to $58 billion from its $70 billion peak on August 23, reflecting scaled-back leverage and dwindling bullish sentiment. Simultaneously, Ethereum's network activity continues to wane, with network revenue plummeting 44% in August. This decline was largely caused by reduced transaction fees resulting from the Dencun upgrade in March 2024, and the revenue dip weakens Ethereum's deflationary mechanism, which has been a cornerstone of its price strength. From a technical standpoint, Ethereum's price behavior paints a cautious picture. A descending triangle on the daily chart signals potential downside risks, establishing $4,200 as a critical support zone. If the price breaches this level, the pattern projects a target drop to $3,550. Analysts suggest the $3,800–$3,900 range could provide interim relief before any meaningful rebound. As of 17:08 UTC on September 8, Ethereum (ETH) trades at $4,329.36. Although CoinMarketCap data shows a 1.05% uptick in 24-hour trading volume, persistent resistance and overlapping technical, market, and network challenges cloud its short-term outlook. As a result, investors remain wary of further declines.