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Ether (ETH) Dips Below $3,100 Amid ETF Outflows and Market Pullback
Ether (ETH), the second-largest cryptocurrency by market capitalization, experienced a price dip below $3,100 on Sunday, trading at $2,990.22. The price fell amid a broader market pullback in digital assets. At 9:36 p.m. UTC, Ether was trading near $3,066, down 3.4% over the past 24 hours. The token briefly broke below the $3,100 level on Bitstamp around 4 p.m. UTC, marking its first breach of this threshold since November 4, according to TradingView data.
Analysts attribute the decline, in part, to recent outflows from Ether spot ETFs. Timothy Peterson of Cane Island Alternative Advisors noted that Ether ETFs have seen net outflows in four of the past five weeks, totaling about 7% of the cost-basis capital invested. Bitcoin ETFs, in comparison, experienced smaller outflows of around 4% over the same period, suggesting investors may perceive Ether as a riskier asset currently.
Cost-basis capital represents the original capital invested in the ETF. Analysts view outflows as an erosion of conviction among long-term holders rather than short-term market movements, as it focuses on the initial capital committed. Traders will be closely monitoring ETF flow data and price action in the coming weeks to gauge the strength of investor sentiment toward Ether and whether the perceived risk gap between Ether and Bitcoin will persist.