Ethereum dropped to $1,506 over the past 24 hours, hitting its weakest valuation since April 2025 and testing the limits of institutional support. The sharp selloff is driven by a broader liquidity drain across financial markets as the U.S. Treasury executes its $900 billion cash account rebuild, quietly pulling institutional capital out of risk-on assets.
Wall Street’s retreat from the asset is accelerating. Spot Ethereum exchange-traded funds have recorded four consecutive weeks of severe outflows, totaling over $870 million. Total assets held in these products have plunged more than 70%, crashing from a peak of $30 billion down to $8.71 billion.
Bearish momentum is visible across the underlying network as major holders position for further downside. Investors transferred 2.24 million ETH to centralized exchanges in a single day. More than half of that volume—1.16 million ETH—flowed directly to Binance, indicating immediate selling intent rather than long-term custody.
Derivatives markets reflect the same risk aversion. Ethereum open interest dropped 13% to $9.8 billion. Options hedging is heavily skewed toward short-term downside protection, with the put-to-call ratio currently standing at 3.7x.
How the Liquidity Squeeze Drags Down Bitcoin
The institutional exodus is not isolated to Ethereum. The macro-level squeeze eroding support across the sector is pulling Bitcoin down toward a four-month low near $60,000. This correlating drop confirms a rapid unwinding of the institutional narratives that drove previous ETF acquisitions earlier in the year.
Centralized exchanges absorbing the heavy volume of offloaded assets are now holding elevated inventory during a period of reduced retail demand. Wall Street’s aggressive exit from the top two digital assets highlights how sensitive institutional cryptocurrency positions remain to traditional macroeconomic liquidity drains.