Key Takeaways
- •Ethereum ETFs experienced outflows for three consecutive days, totaling $364 million.
- •Strategic Ether reserves and ETF holdings have dropped by 124,060 ETH since mid-October.
- •Ether’s descending triangle is in play on the eight-hour chart, targeting a $2,870 price.
Ether (ETH) has fallen 14% over the past 30 days, dropping below $4,000 to trade at $3,724 on Monday. Technical indicators and ETF data suggest a continued correction below $3,000 is increasingly likely.
Waning Institutional Demand Pulls Down ETH Price
The decrease in Ether’s price can be attributed to investors’ de-risking behavior, which is evident in the spot Ethereum exchange-traded funds (ETFs). Capital has been withdrawn from these investment products over the last two weeks.
US-based spot Ether ETFs have recorded a streak of outflows over the past three days, totaling $363.8 million, according to data from SoSoValue.
As previously reported, the four-day inflow streak into the new US-based spot Solana ETFs implies continued capital rotation from Bitcoin and Ether funds.
Data from StrategicETHreserve.xyz indicates that collective holdings of strategic reserves and ETFs have dropped by 124,060 ETH since October 16. This decrease highlights a reduction in demand among major institutional and corporate players.
Analyst Ted Pillows noted in a recent X post that "Ethereum treasury companies are still going down," with BitMine being the only significant buyer. He added, "I don’t think it’ll continue for long."
Pillows further commented that with the price declining, "treasury companies will soon run out of money to buy $ETH." He concluded, "Until these stocks recover, I don’t see a possibility of ETH price recovery."
Descending Triangle Projects a 22% Drop
Since October 7, the ETH price has been forming a descending triangle pattern on its eight-hour chart. This pattern is characterized by a flat support level combined with a downward-sloping resistance line.
A descending triangle chart pattern that forms after a strong uptrend is generally considered a bearish reversal indicator. Typically, the pattern resolves when the price breaks below the flat support level, with the potential drop equal to the triangle’s maximum height.
Analyst CryptoBull_360 stated in an X post that "ETH has broken below the descending triangle pattern and is currently testing the breakdown level." They added, "If the retest of the breakdown level is successful, it confirms that the downtrend will continue."
The measured target for this triangle pattern is $2,870, representing a 22% drop from current price levels.
Further contributing to Ether’s downside pressure 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 to track the ETH price trend, similar to moving averages, and incorporates the average true range in its calculations to help traders identify market trends.
The most recent sell signal from this indicator occurred on October 7 and was followed by a 22% price drop, from $4,750 to $3,700.
Pillows indicated that ETH price is currently at a "crucial support zone" around $3,700, suggesting that a deeper drop to $3,500 is possible if the $4,000 level is not quickly reclaimed.
It was previously reported that the ETH/USD pair could fall to $3,350 if the support level at $3,700 is breached.