The price of Ethereum has fallen below a crucial support level as the outlook for spot ETH ETFs worsens. The ETH coin has plunged to a low of $1,800, a sharp decline from last year’s high of $4,000.
Spot ETH ETF Outlook is Darkening
Data shows that the demand for spot ETH ETFs has dried up this year. According to SoSoValue, these ETFs had net outflows of over $403 million this month, the worst performance ever.
A deeper analysis reveals that these funds experienced net inflows for only two days during the month, marking the longest losing streak.
The $409 million outflow marked a sharp reversal after the funds added $60 million in assets in February and $2.0 billion in December.
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The Grayscale Ethereum ETF (ETHE) leads with over $2.2 billion in assets. It is followed by Blackrock’s ETHA ETF, also with over $2.2 billion, and Grayscale’s ETH with $854 million.
The ongoing bleeding of ETH ETFs is a big divergence from what happened with spot Bitcoin ETFs. Spot BTC ETFs have experienced two consecutive weeks of inflows, with $196 million added last week and $744 million the week before. Since January last year, these funds have added over $36 billion in assets.
The divergence between Ethereum and Bitcoin ETFs indicates investors’ lack of interest in Ether, partly because they can benefit from its price increase and staking yield by holding it directly on exchanges. The total Ethereum staking market cap stands at over $95 billion.
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Ethereum Price Analysis
The weekly chart shows that the ETH price has crashed in the past few months. This drop happened after forming a triple-top chart pattern at $4,035. It dropped below the important support level at $2,113, its lowest in August last year.
Ethereum’s price has also tumbled below the 61.8% Fibonacci Retracement level at $1,936. This is a risky situation since this retracement point is known as the golden ratio, where most pullbacks happen.
ETH price has moved below the Ichimoku cloud indicator. Therefore, the path of the least resistance to watch will be $1,207, the second support of the Woodie pivot point. This price is about 35% below the current level. Moving above the resistance level at $2,110 would invalidate the bearish view.
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