Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
Main takeaways:
-
Ethereum ETFs have experienced flows for three consecutive days, totaling $364 million.
-
Since mid-October, the strategic reserves of Ether and ETF have fallen from 124,060 ETH.
-
Ether’s descending triangle is in play on the eight-hour chart, targeting the price of $2,870 ETH.
ether (ETH) fell 14% in the past 30 days, falling below $4,000 to trade at $3,724 on Monday. However, technical data and ETFs do not show much bullishness, increasing the chances of a further correction below $3,000.
Declining institutional demand pulls down the ETH price
The decrease in the price of Ether can be attributed to the risk-taking behavior of investors, which is visible in the spot Ethereum traded funds (ETFs). Traders have withdrawn capital from these investment products in the last two weeks.
Related: ETFs will induce institutions in altcoins, such as Bitcoin: Analyst
U.S.-based Ether spot ETFs have recorded a streak of flows over the past three days, totaling $363.8 million, according to data from SoSoValue.
As Cointelegraph reportedThe four-day streak in the new US-based Solana ETFs spot implies continued capital turnover from Bitcoin and Ether funds.
Given by StrategicETReserve.xyz indicates that the collective holdings of strategic reserves and ETFs have fallen by 124,060 ETH since October 16.
The decrease highlights a drop in demand among the main institutional and corporate players.
“Ethereum treasury companies are still on the decline”, with BitMine being the only significant buyer, he said analyst Ted Pillows in a Monday X post, adding: “I don’t think it will continue for long.”
With the price falling, “treasury companies will soon run out of money to buy $ETH,” the analyst wrote, adding:
“Until these stocks recover, I don’t see any possibility of ETH price recovery.”
The descending triangle projects a 22% drop.
Since October 7, ETH price has been forming a descending triangle pattern on its eight-hour chart, characterized by a flat support level mixed with a sloping resistance line.
A descending triangle paper model which forms after a strong uptrend is seen as a bearish reversal indicator. As a rule, the setup is resolved when the price breaks below the flat support level and falls as much as the maximum height of the triangle.
“ETH has broken below the descending triangle pattern and is currently testing the breakout level,” he said analyst CryptoBull_360 in an X post on Monday, adding:
“If the retest of the breakout level is successful, it confirms that the downtrend will continue.”
The measured target of the triangle is $2,870, or a 22% drop from current price levels.
Adding to the downside of Ether is the SuperTrend indicator, which flashed a bearish signal when it reversed from green to red and moved above the price on Thursday.
This indicator overlays the chart while following the ETH price trend, like the moving average. It incorporates the true average 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% price drop to $3,700 from $4,750.
Pillows said the ETH price is in a “crucial support zone” around $3,700, adding that a deeper drop to $3,500 was possible if $4,000 is not recovered quickly.
As Cointelegraph reportedThe ETH/USD pair may 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 business move involves risk, and readers should do their own research when making a decision.
