Ethereum (ETH), the world’s second most valuable cryptocurrency by market capitalization, operates as a distributed ledger technology (DLT)-based platform supporting various decentralized applications (dApps), including decentralized finance (DeFi) and smart contracts.
It is now trading at $1,943 after enduring an extended downward price action that wiped out previously accumulated gains from the recent range-based consolidation phase preceding this sell-off, resulting in a notable price decline. At press time, the coin is trading at $1,923.98 with a decline of 3.47% over the past 24 hours.
According to the daily chart from TradingView, we can see that Ethereum has recently broken down out of the $2,400 support zone.
This breakdown accelerated downside momentum, and with increased volume accompanying this, we can conclude there has been a lot of selling pressure (distribution) as opposed to low liquidity movements.
At this point, Ethereum is now sitting just above the $1,900 demand zone. However, from the larger time frame perspective, the market is still bearish due to a series of lower highs and lower lows being formed.
On-Balance Volume continues to trend lower, confirming a lack of sustained accumulation. To completely eliminate risks of downside, Ethereum would need to reclaim the $2,100-2,200 range.
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Analyst Ali Charts highlighted on his tweet that Ethereum ETFs have recorded five consecutive weeks of net outflows, reflecting sustained institutional caution.
While the magnitude of withdrawals has gradually declined week over week, the continued negative flow trend indicates that large investors remain in a defensive posture rather than shifting toward accumulation.
In essence, capital is still exiting Ethereum-linked products, but the slowing pace of outflows may suggest that selling pressure is stabilizing rather than accelerating.
In conclusion, until ETH can stabilize above previously broken resistance levels, continued ETF outflows coupled with a weak volume structure will likely continue to hinder attempted recoveries from occurring in the near future
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