On Monday, Ethereum (ETH) fell 2%, trading close to the psychological level of $2,000, despite an increase in net outflows from exchanges. The ongoing negative market sentiment may stem from cryptocurrency exchange-traded fund (ETF) investors continuing to reduce their positions.

The decline in Ethereum attracted native crypto investors, while ETF participants continued to sell.

After Ethereum dropped to the $2,000 psychological level last week, it experienced the highest weekly net outflow. According to data from IntoTheBlock, last week's net outflow of ETH from cryptocurrency exchanges was about $1.8 billion, the highest weekly amount since December 2022.

"Despite the ongoing pessimism regarding Ethereum's price, this trend indicates that many holders see the current levels as a strategic buying opportunity," an analyst from IntoTheBlock wrote in a post on X on Monday.