Ethereum Price crashed for two consecutive weeks, retesting key support levels as funds trading on the exchange jumped outflows.
summary
- Ethereum’s two-week slides have brought the token back to its main support level of $4,000.
- The US-listed ETH fund poured its largest ever outflow of nearly $800 million this week.
- With $26 billion still parked in the Ethereum ETF, which accounts for 5.37% of total supply, Pullback highlights how quickly institutional sentiment towards the world’s second largest cryptocurrency changes.
Ethereum prices will fall as ETH ETF spills rise
Ethereum (ETH) is trading at $4,000 at a critical support level, falling from $4,920 since the start of the year. It is 190% above the April low of $1,377.
ETH prices were rebound this week as demand from American institutional investors slowed and liquidation rose.
Data shows that ETH ETF recorded a $795 million spill this week. Previous weekly record cuts more than $787 million in assets in the first week of September.
Ethereum Funds experienced an influx of $556 million last week, and the previous $637 million. It is a sign that the growth momentum of the American institution is declining.
These funds currently have $26 billion in assets, equivalent to 5.37% of the total supply.
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ETH prices slipped after struggling with a whopping $1.5 billion clearance on weekdays. These liquidation came when exchanges like Binance and OKX closed down that they exploited bull trading as prices crashed. Historically, a significant increase in liquidation results in lower assets.
Macro factors also contributed to Ethereum price crashes. For example, there are concerns about whether the Federal Reserve will cut interest rates in the coming weeks amidst sustained inflation. A report released this week showed that personal consumption is further apart from the 2.0% Fed’s target.
ETH Price Technology Analysis
Ethereum Price Chart | Source: crypto.news
The weekly chart shows ETH prices have been pulled back from a high of $4,918 this week to a low of $3,825.
On the plus side, the coin formed a break and letterst pattern as the current levels are in line with the highest points last March, May and November. Break and retest is a common continuation sign.
The coin also surpasses the exponential moving average of 50 and 100 weeks. So, the outlook is bullish as long as it’s $4,000 above support. If this happens, the coin could retest the all-time high and move to $5,000.
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