- Ethereum price continued its strong downward trend this week.
- Spot ETH ETFs have suffered an $83 million in outflows this month.
- Key Ethereum metrics like the DeFi TVL dropped to $44 billion.
Ethereum price dropped sharply to $2,220 on Saturday, reaching its lowest level since April 29. It has slumped from the crucial resistance level at $2,445, and there is a risk that it has peaked as ETH ETF outflows rise.
Spot ETH ETFs Have Turned Negative for the Month
Ethereum price has pulled back in the past few days as third-party data points to waning demand in the United States.
Data compiled by SoSoValue shows that spot ETH ETFs suffered outflows in the last six consecutive days, with the selling surging on Friday when they lost over $65 million in assets.
As a result, Ethereum funds shed over $255 million in assets this week, bringing this month’s outflows to $83 million, an important situation since these funds added over $355 million in assets last month.
READ MORE: Top 4 Risks That May Derail the Crypto Market Rally
The ongoing Ethereum price pullback has coincided with Friday’s pullback in the US stock market, with the Dow Jones, Nasdaq 100, and S&P 500 indices falling by over 537, 410, and 92 points, respectively. Other global indices like South Korea’s Kospi and Japan’s Nikkei 225 also retreated.
The decline also happened as investors sold the CLARITY Act news. As you recall, Ethereum and other altcoins jumped on Thursday after the Senate Banking Committee voted in favor of the CLARITY Act in a bipartisan manner.
This means that the bill will be passed by the full Senate and signed into law by President Donald Trump. It is common for an asset to jump when a major news event happens and pull back when it happens eventually.
Ethereum price has also pulled back amid challenges in its ecosystem, with the total value locked (TVL) in the network falling to $44.6 billion from last year’s high of $96 billion.
Its Chinese fees dropped to over $36 million in the first quarter, the worst performance in years. The app revenue in the network has also continued falling in the past few months.
Ethereum Price Prediction: Technical Analysis
The daily chart reveals that the ETH price rebound found a strong wall at $2,445 this year. It failed to move above that level several times since March this year.
The coin has now dropped below the ascending trendline, which coincides with the lowest swings in February and March this year.
It has also dropped below the 50-day moving average, while the MACD has been flagging a bearish divergence pattern since April.
Therefore, the coin will likely continue falling, potentially to the key support level being the psychological level at $2,000. On the other hand, a move above the key resistance level at $2,445 will invalidate the bearish outlook and point to more gains.
READ MORE: Top 4 AI Crypto Coins to Buy Ahead of NVIDIA Earnings on May 20
