Ethereum struggles to stay above $4,000 as traders sell and ETFs see major outflows.
- ETH price failed to stay above $4,000, showing strong market resistance.
- Spot Ethereum ETFs saw $640M in outflows over eight days.
- Analysts warn ETH could fall to $3,100 if demand does not return soon.
Ethereum Faces Key Resistance at $4K
The price of Ether (ETH) dropped to around $3,800, after failing to hold above the $4,000 level. Traders say this shows a strong resistance near $4,000. For Ether to bounce back, it needs to close above that level and stay there. If it does, it may move higher again. But until that happens, the price could stay low or even drop more.
Lack of Buyer Demand Hurts Price Recovery
Ether’s price rebound is being held back by weak demand. One key reason is the lack of new buyers in the market. Trade data shows there are still more sellers than buyers. This creates pressure on the price and limits any strong move upward. Without more buying activity, ETH may not reach higher levels in the near term.
Ethereum ETF Outflows Add to Pressure
Spot Ethereum ETFs are also seeing investors pull out money. Over the past eight days, these ETFs have lost $640.5 million. On one day alone, investors withdrew $145.7 million. This shows falling interest in Ethereum investment products. ETFs are ways for people to invest in ETH without directly holding the coins. When money leaves these funds, it often signals low confidence in the asset.
Bearish Pattern Points to $3,100 Target
Analysts have spotted a bear flag on Ethereum’s price chart. This is a pattern that hints at further price drops. The pattern suggests ETH could fall as much as 20%, reaching around $3,100. The Relative Strength Index (RSI) remains below the neutral level of 50, which usually means sellers are in control. Unless something changes soon, Ethereum could continue falling.
Some Traders Still Hopeful
Even with these bearish signs, not all traders have given up. Some believe ETH is just retesting its strength before a bigger move up. Popular analyst Jelle said that Ethereum is holding support well and may be ready for quick growth. Still, many agree that the $4,000 level is key. If Ether climbs and holds above that mark, confidence could return.
Source: cointelegraph.com
