The price of Ethereum has fallen below the critical threshold of $2,800, primarily influenced by renewed outflows from exchange-traded funds (ETFs) and a lack of robust trader positioning. As of the latest update, Ethereum is trading at $2,739, reflecting an 8% decline within the last 24 hours, and mirroring a similar drop of 8% over the past week and nearly 10% over the last month.
This decline occurs despite a notable increase in trading activity, with a surge of 81% in 24-hour trading volume, amounting to $42.8 billion. This heightened activity highlights the market”s volatility during the sell-off period. Data from CoinGlass indicates that Ethereum (ETH) futures volume has risen by 55% to $90.55 billion, while open interest has decreased by 11% to $34.29 billion. This combination of increased volume and decreasing open interest suggests that traders are prioritizing risk reduction rather than taking on additional leverage.
ETF outflows have significantly impacted Ethereum”s near-term demand, with reports indicating that U.S. spot ETH ETFs experienced net outflows of $155 million in a single day, as per data from SoSoValue. Among the hardest hit was Fidelity”s FETH, which saw redemptions totaling $59.19 million, while BlackRock”s ETHA experienced losses of $54.88 million. Cumulatively, weekly outflows have reached $74 million, illustrating a trend that could continue to affect Ethereum”s price dynamics.
The movement of funds out of these ETFs is critical, as it often necessitates the selling of ETH to meet redemption demands, further exerting pressure on an already fragile market. Additionally, a decrease in the Coinbase Premium Index points to waning interest among U.S. traders, contributing to Ethereum”s drift in relatively narrow price ranges.
Market sentiment has also suffered from various network-related developments. Discussions surrounding quantum-resistant upgrades have brought attention to security concerns, while reports of a potential large-scale poisoning attack have raised alarms regarding user safety. Although these issues do not pose immediate operational threats to Ethereum, they contribute to a climate of caution among traders.
From a technical perspective, Ethereum”s drop below the $2,800 to $2,900 consolidation zone marks a significant breakdown. This area had previously provided support, and its loss indicates a shift in control to sellers. The short-term price structure remains bearish, characterized by lower highs and unsuccessful rebound attempts near the $3,050 to $3,100 resistance zone.
Currently, Ethereum is trading below its short-term moving averages, with the middle Bollinger band positioned around $3,070 acting as a resistance ceiling. Until Ethereum can reclaim and hold above the $2,950 to $3,000 range on a daily close, the outlook remains pessimistic, suggesting that any upward movements are likely to be met with selling pressure rather than the beginning of a new uptrend.
The initial support level on the downside is situated around the $2,700 mark, which aligns with both the lower Bollinger Band and recent lows. For a positive shift in sentiment, Ethereum must not only cross back above the critical $2,950 to $3,000 region but also maintain that position to regain investor confidence.
