Ethereum price could be on the verge of a strong bearish breakout despite the ongoing ecosystem growth. ETH token was trading at $2,957, down by 12% from its highest level this year.
JPMorgan My OnChain Net Yield Growth Continues
ETH price retreated even as the newly launched My OnChain Net Yield Fund (MONY) gained $100 million in assets on the first day. This is a major development that shows that there is strong demand for the product as its annual management fee is 0.16% and the minimum investment is $1 million.
The inflows brought the total amount of money in Ethereum’s tokenized assets to over $13 billion, up by 7% in the last 30 days. The other notable funds in the network are by companies like BlackRock, Franklin Templeton, WisdomTree, and Ondo.
Analysts believe that Real-World Asset (RWA) tokenization is still in its infancy and that assets worth trillions of dollars will eventually be tokenized.
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Most of this tokenization will be on key industries like equities and credit. For example, companies like Ondo and Robinhood have already started offering hundreds of tokenized stocks and ETFs.
Meanwhile, more data shows that Ethereum’s network has continued growing after the developers launched the Fusaka upgrade. Data compiled by Nansen shows that the number of transactions in the network jumped by 36% in the last 30 to over 62.2 million. Similarly, the number of active addresses rose by 55% to 13.8 million.
More Ethereum metrics have continued rising. For example, the stablecoin supply in the network continued rising and currently stands at over $161 billion, giving it a substantial market share in an industry with over $310 billion in assets. Its staking ratio has soared, while Ethereum’s supply in exchanges has tumbled.
Ethereum Price Technical Analysis
The daily timeframe chart shows that the Ethereum price could be at risk of a deep dive in the coming days. It has formed the risky bearish flag pattern, which is made up of a vertical line and an ascending channel pattern.
The coin has moved below the 50-day Exponential Moving Average (EMA) and the 50% Fibonacci Retracement level at $3,168.
It also remains below the Supertrend and the Ichimoku cloud indicators, a sign that bears are in control for now.
Therefore, the most likely scenario is where it has a bearish breakdown in the coming days. Such a move may see it drop to the key support level at $2,620, its lowest level in November, which aligns with the 61.8% Fibonacci Retracement level a drop below that level will point to more downside, potentially to $2,500.
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