Main takeaways:
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Ethereum ETFs saw outflows for three consecutive days, totaling $364 million.
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Strategic reserves of ether and ETF holdings have decreased by 124,060 ETH since mid-October.
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A bearish triangle for Ethereum is displayed on the eight-hour chart, with a price target of $2,870 for Ethereum.
ether (Ethereum) rose 14% over the past 30 days, falling below $4,000 to trade at $3,724 on Monday. However, technical and ETF data do not show much upside, raising the odds of a further correction below the $3,000 level.
Declining institutional demand causes the price of ETH to fall
The decline in the price of ether can be attributed to investors’ risk-off behavior, which is seen all over the world Ethereum ETFs (Traded Funds). Traders have withdrawn capital from these investment products over the past two weeks.
Related to: ETFs will funnel institutions into altcoins, just like Bitcoin: Analyst
US-based Ethereum spot ETFs recorded a series of outflows over the past three days, totaling $363.8 million, according to data from SoSoValue.
like Cointelegraph reportedThe four-day series of inflows into new US-based Solana spot ETFs means continued capital turnover from Bitcoin and Ether funds.
Data from StrategyETHreserve.xyz It indicates that collective holdings of strategic reserves and ETFs have decreased by 124,060 ETH since October 16.
This decline highlights the decline in demand among major institutions and companies.
“Ethereum treasury companies are still in decline,” with BitMine the only significant buyer, He said Analyst Ted Bellows in a post on Monday
As prices fell, the analyst wrote: “Treasuries will soon run out of money to buy ETH dollars,” adding:
“Until these stocks recover, I don’t see the possibility of the Ethereum price recovering.”
The descending triangle predicts a 22% decline
Since October 7, Ethereum price has been forming a bearish triangle pattern on the 8-hour chart, which features a flat support level mixed with a downward sloping resistance line.
Descending triangle Chart style One that forms after a strong uptrend is considered a bearish reversal indicator. As a rule, the setup is resolved when the price breaks below the flat support level and falls by the maximum height of the triangle.
“ETH has broken below the descending triangle pattern and is currently testing the breakdown level.” He said CryptoBull_360 analyst in a post on Monday, adding:
“If the retest of the breakout level is successful, this confirms that the downtrend will continue.”
The measured target for the triangle is $2,870, or a 22% decline from current price levels.
Adding to Ether’s downside is the SuperTrend indicator, which triggered a bearish signal when it reversed from green to red and moved above the price on Thursday.
This indicator overlays the chart while tracking the ETH price trend, such as moving averages. It incorporates the average true range into its calculations, which helps traders identify market trends.
The most recent sell signal from this indicator came on October 7 and was followed by a 22% drop in price to $3,700 from $4,750.
Ethereum price is at a “critical support area” around $3,700, Bellows said, adding that a deeper drop to $3,500 was possible if $4,000 was not quickly recovered.
like Cointelegraph reportedETH/USD could fall to $3,350 if the support level at $3,700 is breached.
This article does not contain investment advice or recommendations. Every investment and trading move involves risks, and readers should conduct their own research when making a decision.
