Ethereum (ETH) spot exchange-traded funds (ETFs) recorded $163 million in outflows this week, marking the third-largest weekly outflow since their introduction in July. This development comes as ETH struggles to maintain bullish momentum and break past the $3,400 resistance level.
Ethereum ETF Outflows Hit Hard
Data from SosoValue reveals that the $163 million outflow follows a record-breaking $515.17 million inflow just weeks ago. That spike, driven by post-election optimism, had ignited a rally across the crypto market.
Now, Ethereum’s momentum appears to be fading. Profit-taking has surged, while ETH’s price performance against Bitcoin (ETH/BTC ratio) is at its lowest since March 2021. This shift indicates growing bearish sentiment as investors reevaluate their positions.
Aroon Indicator Shows Bearish Trends
The Aroon Up Line, which tracks new highs over a 25-period window, has fallen to 28.57%. A declining Aroon Up Line signals weakening bullish momentum or a potential trend reversal.
This downward movement means ETH’s price is struggling to reach new highs, raising concerns about further declines.
ETH Price Prediction: Bull Flag in the Works?
Despite bearish signals, ETH’s one-day chart hints at the possibility of a bull flag forming. This pattern typically suggests a continuation of an uptrend if confirmed.
- Resistance Level: A break above $3,997 could lead ETH to rally toward $3,534.
- Support Level: Failing to hold above $3,262 would invalidate the bullish outlook, signaling further declines.
For the bull flag to play out, buying pressure must return to the market. Otherwise, ETH’s price risks dropping further.
Conclusion
The $163 million in Ethereum ETF outflows highlights growing bearish pressure on ETH. With indicators like the Aroon Up Line pointing to a potential reversal, traders should watch key resistance and support levels closely. Will ETH regain its footing, or is further downside on the horizon?
