Ether (ETH) continues to face resistance at the critical $2,000 level, with its price oscillating within a tight $130 range over the past week. As of now, ETH is trading between $1,810 and $1,960, with bearish pressures keeping it below the psychological resistance level.
Spot Ethereum ETF Outflows Weigh on Price
A key factor in Ethereum’s recent underperformance is the persistent outflow from spot Ethereum exchange-traded funds (ETFs). Over the last seven days, U.S.-based spot ETH ETFs have recorded cumulative outflows of $265.4 million, according to SoSoValue. In addition, other Ethereum investment products have seen outflows totaling $176 million, bringing the month-to-date capital flight from Ether ETPs to a staggering $265 million.
James Butterfill, head of research at CoinShares, highlighted that this represents the “worst on record” for Ethereum investment products, marking the longest negative streak since 2015. The ongoing capital flight suggests that institutional investors are adopting a risk-off stance, contributing to ETH’s price weakness.
Declining On-Chain Activity Signals Bearish Sentiment
Ethereum’s weak price action is further exacerbated by declining on-chain activity. Despite maintaining leadership in the decentralized exchange (DEX) space, Ethereum’s seven-day DEX volume has dropped by approximately 30%, falling to $16.8 billion as of March 17.
Significant declines in activity were observed across various Ethereum-based platforms, with Maverick Protocol experiencing an 85% drop and Dodo seeing a 45% decline. Meanwhile, Ethereum’s total value locked (TVL) has fallen 9.3% month-to-date, marking a steep 47% decline from its January peak of $77 billion to $46.37 billion as of March 11.
Lido, a key player in Ethereum staking, has seen a 30% drop in TVL over the past 30 days, while EigenLayer (-30%), Ether.fi (-29%), and Maker (-28%) have also recorded sharp declines, underscoring the network’s weakening fundamentals.
Technical Analysis: Bear Flag Formation Hints at More Downside
From a technical perspective, Ethereum is forming a bear flag pattern on the four-hour chart, indicating the potential for further downside. The pattern suggests that if ETH breaks below the $1,880 support level with a daily close, it could trigger a decline to $1,530—a 20% drop from current levels.
The Relative Strength Index (RSI) stands at 48, signaling bearish momentum. Bulls will need to push ETH above the flag’s upper boundary at $1,970 to invalidate the bearish setup. A daily close above $1,930, aligned with the 50-day SMA, would provide the first sign of recovery.
Also Read: Ethereum Staking Hits Record High Despite 30% Price Drop – What’s Next for ETH?
For now, Ethereum remains vulnerable to further declines unless network activity improves and ETF outflows subside.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of CoinBrief.io. Before making any investment decisions, you should always conduct your own research. Coin Brief is not responsible for any financial losses.
