Ethereum Stays Below Key Price Level as ETH Exchange-Traded Funds See Rise in Withdrawals
The price of Ethereum has made a slight recovery in recent days but still remains beneath a significant resistance threshold.
On Saturday, Ethereum (ETH) surged past the month’s low of $1,762. As of the latest update, it was trading at approximately $1,940.57.
The second-largest cryptocurrency continues to experience a substantial bear market, having declined over 53% from its peak in December.
Investors are largely on the sidelines as both the crypto and stock markets retreat in the wake of President Donald Trump’s tariffs.
According to third-party data, Wall Street investors have been offloading their Ether ETFs. SoSoValue reports that all Ethereum ETFs lost more than $143 million in assets this week, a significant increase from the $119 million loss the previous week.
These ETFs have experienced asset depletion for three consecutive weeks, bringing the total net inflows down to $2.56 billion. Grayscale’s ETHE boasts over $2.35 billion in assets, while Blackrock’s ETHA holds $2.1 billion. Collectively, all Ethereum ETFs hold over $6.6 billion—much lower than Bitcoin’s (BTC) $93 billion dominance.
Moreover, the futures market indicates potential trouble for Ethereum prices. Data reveals that linear weekly futures have entered the backwardation phase for the first time since August. Backwardation occurs when futures prices fall below the current market levels.
On a brighter note, some investors appear to be taking advantage of the dip. Donald Trump’s World Liberty Financial has acquired over $540,000 worth of ETH.
Additional insights from CryptoQuant show that large investors, or whales, are still accumulating ETH. Recently, the balances held by these major players have shown an upward trend.
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Ethereum Price Analysis
Recent daily charts indicate that the price of Ethereum has stabilized over the last few days, climbing from a low of $1,762 to $1,930.
However, Ethereum has not succeeded in converting the critical psychological level of $3,000 into support. It remains below the vital resistance level of $2,115, which marked the lowest swing in August, and beneath the neckline of the triple-top formation at $4,000.
A death cross pattern has emerged as the 50-day and 200-day moving averages have crossed each other. Furthermore, a bearish pennant formation suggests potential further downside movement. This bearish outlook will be validated if the price drops below this month’s low of $1,762.