Ethereum (ETH) has experienced a significant decline in value over the past 30 days, with its price dropping by 14% to $3,724 as of Monday. This downward trend is largely attributed to declining institutional demand, which is evident in the outflows from Ethereum spot exchange-traded funds (ETFs). According to data from SoSoValue, US-based spot Ether ETFs have seen outflows totaling $363.8 million over the past three days.
ETH/USD daily chart. Source: Cointelegraph/TradingView
Declining Institutional Demand
The decline in Ether’s price can be linked to investors’ de-risking behavior, which is visible in Ethereum spot ETFs. Traders have been withdrawing capital from these investment products over the last two weeks. This trend is further supported by data from StrategicETHreserve.xyz, which shows that the total holdings of Strategic Reserves and ETFs have decreased by 124,060 ETH since October 16th.
Ether ETF flowchart. Source: SoSoValue
Analyst Ted Pillows noted that “Ethereum treasury companies are still in decline,” with BitMine being the only significant buyer. Pillows expressed concerns that this trend may not continue for long, stating, “I don’t think this will continue for long.” If the price falls, “treasury firms will soon run out of money to buy $ETH,” he added.
Technical Analysis
From a technical standpoint, ETH’s price has been forming a descending triangle pattern on its eight-hour chart since October 7. This pattern is characterized by a flat support level and a downward-sloping resistance line. A descending triangle chart pattern that forms after a strong uptrend is considered a bearish reversal indicator.
ETH government bonds and ETF holding reserve. Source: StrategicETHreserve.xyz
The measured target of the triangle is $2,870, which represents a 22% decline from current price levels. Analyst CryptoBull_360 noted that “ETH has broken below the descending triangle pattern and is currently testing the breakout level.” If the retest of the breakout level is successful, it will confirm that the downtrend will continue.
ETH/USD eight-hour chart. Source: Cointelegraph/TradingView
SuperTrend Indicator
The SuperTrend indicator has also sent out a bearish signal, turning from green to red and rising above the price on Thursday. This indicator overlays the chart while tracking ETH price action, similar to moving averages. It incorporates the average true range into its calculations, which helps traders identify market trends.
Pillows stated that ETH price is in a “crucial support zone” around $3,700, adding that a deeper decline to $3,500 is possible if $4,000 is not quickly reclaimed. As Cointelegraph reported, the ETH/USD pair could fall to $3,350 if the support at $3,700 is broken.
This article does not contain any investment advice or recommendations. Every investment and trading activity involves risks, and readers should conduct their own research when making their decision. For more information, visit https://cointelegraph.com/news/ethereum-price-chart-targets-sub-3k-spot-etf-demand-cools
