Ethereum’s price has been volatile in recent months, going from a year-to-date high of $4,945 in August to a current high of $3,412.
summary
- Ethereum price is slowly forming a death cross pattern on the daily chart.
- Also, as the weakness continues, it is forming a bearish pennant pattern.
- Ethereum ETF outflows have been going on for the past few weeks
The Ethereum (ETH) token retreated as industry sentiment faded, with the Crypto Fear and Greed Index moving into the fear zone at 25.
The stock price fell as investors continued to reduce their positions over the past few months. Data shows Ethereum ETF inflows are slowing, a sign that demand is waning after October’s massive liquidation.
The Spot Ethereum ETF lost more than $507 million last week after adding $15.7 million a week ago. Prior to that, there had been net outflows for the past two consecutive weeks. As a result, cumulative net outflows rose to $13.86 billion from nearly $15 billion earlier this year.
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Ethereum’s price also fell as investors reduced their use of leverage. Futures open interest has been declining significantly, from a peak of $70 billion in August to a current low of $39 billion.
The downturn in the futures market is noteworthy as it is one of the most active markets in the crypto industry. Most notably, spot market volume has also continued to decline over the past few months.
Ethereum is also struggling, with cracks starting to appear among its financial affiliates. Major Ethereum bonds such as BitMine, SharpLink, and ETHZilla have all fallen sharply recently.
ETHZilla has even sold some of its Ethereum holdings in order to boost its stock price through share buybacks. If the NAV multiple declines, there is a risk that ETH purchases will slow or some companies will start selling their tokens.
Ethereum price is about to form a death cross
ETH price chart |Source: crypto.news
The recent ETH price crash is likely to accelerate in the coming weeks. The spread between the 50-day weighted moving average and the 200-day weighted moving average has fallen sharply and is forming a death cross pattern.
The coin is also forming a bearish pennant pattern featuring vertical lines and symmetrical triangles. It also fell below the 38.2% Fibonacci retracement level.
Therefore, the coin could have a strong bearish breakout, with a 50% retracement point at $3,100 followed by a psychological point at $3,000.
Disclosure: This article does not represent investment advice. The content and materials published on this page are for educational purposes only.
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