Institutions dump ETH as Ethereum falls 36% YTD – Sell pressure rises further

Ethereum [$ETH] has continued to hover between $1.5k and $1.6k amid prolonged market weakness. At press time, the altcoin was trading around $1,591 after rising slightly by 0.85% on the daily charts.

As the $ETH market struggles persist, high-net-worth investors are capitulating and exiting at a loss.

FG Nexus’ losses on Ethereum hit $86 million

With Ethereum down 36% YTD, high-net-worth investors who aggressively accumulated in 2025 are counting losses. As losses continued to rise, these investors, especially institutions, were aggressively exiting the market.

Onchain Lens reported one such investor. According to the on-chain monitor, FG Nexus sold another 3,375 $ETH worth $5.34 million.

FG Nexus bought 50,770 $ETH for $196 million. So far, the team has sold 41,675 $ETH for $94.51 million. The latest sale pushed the total loss realized to over $86.8 million.

When institutional investors sell at a loss during a downtrend, it signals fear of more losses.

Institutions on the back foot

Interestingly, FG Nexus is not an isolated case, as U.S. institutional investors have been aggressively dumping $ETH.

A look at the Coinbase Premium Index shows the metric has remained negative for 53 consecutive days. Such a streak was last seen between January and February, a period when Ethereum dropped from $3k to $1.8k.

In addition to institutional investors, it seems all market participants are currently less incentivized to hold their positions.

Looking at the altcoin’s Exchange Netflow, this metric has remained positive for two consecutive days. At press time, Netflow was 11.6k $ETH.

A positive Netflow indicates increased exchange deposits relative to outflows. Such an exchange setup means more sellers than buyers.

Historically, such market conditions have preceded a weakened market structure, resulting in greater losses.

What’s next for $ETH?

Ethereum is currently facing weak demand and intense selling pressure, especially from institutional investors. As a result, the altcoin’s downside momentum continued to strengthen.

A look at the Daily Relative Strength Index (RSI), this indicator has remained deeply within the bearish zone. Currently, RSI sits at 35, near the oversold area, suggesting bears have total market control.

Historically, when this momentum indicator is at such low levels, $ETH has experienced prolonged weakness. Therefore, if the prevailing market sentiment persists, Ethereum is likely to see more losses on its price charts.

If this happens, $ETH could lose the $1.5k support level and drop to $1,400. However, in the short term, the only viable positive outlook is Ethereum’s continued sideways movement, trading between $1.5k and $1.7k.

Final Summary

• FG Nexus sold another 3,375 $ETH worth $5.34 million, extending realized losses to $86.8 million.
• $ETH faces intense selling pressure from institutional investors, as bears eye a slip towards $1.4k.