Ethereum price retreated below a crucial support level amid signs of weakening demand. ETH token dropped to $2,191, its lowest level in over a month. This retreat may persist as ETH ETF outflows persist and futures open interest eases.
ETH ETF and Staking Outflows are Soaring
Ethereum coin continued its recent downward trend amid accelerating concerns about demand. SoSoValue data shows that spot ETH ETFs have experienced outflows over the last 6 consecutive days. These flows retreated by over $65 million on Friday, bringing the weekly outflows to $255 million. These funds have moved from a net inflow to a monthly outflow of $83 million.
Ethereum ETFs added over $355 million in assets in April this year, their best period since October last year. That is a sign that American investors are losing patience with its ongoing underperformance and may be rotating into the booming stock market.
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More data shows that Ethereum’s futures open interest has continued falling this month. It stood at $32 billion on Monday, down sharply from last year’s high of over $100 billion. A decline in open interest is a sign that the coin’s demand is weakening.
The same is happening in the staking market. Data compiled by StakingRewards shows that over 184k ETH tokens have left staking pools in the last 30 days. At the current price, these coins are worth a whopping $406 million.
There are signs that the largest Ethereum buyer will stop purchasing in the coming months, a move that may affect demand. BitMine, led by Tom Lee, has bought 331k ETH over the last 30 days, bringing its holdings to over 5.2 million. If its trend continues, it will hit its 6 million target in July this year, ending its purchases.
Ethereum Price Technical Analysis
The daily chart shows that ETH has slumped over the past few days. This retreat began when it encountered substantial resistance at $2,445, its highest point in April this year, and at the 100-day Exponential Moving Average (EMA).
The coin has slumped below the ascending trendline, which connects the lowest swings since February 25 this year. It was the lower side of the ascending triangle pattern.
The coin’s Relative Strength Index (RSI) has moved downwards and crossed the neutral point at 50. Other oscillators have continued to fall over the past few days.
Therefore, the path of least resistance is bearish, with the next key target being the psychological $2,000 level. The bearish outlook will become invalid if it moves above the key resistance level at $2,445.
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