Ethereum rebounded sharply from $2,400 at the beginning of last week and fell to $2,100 on Monday. According to the latest data, it seems that sales have gained momentum again and the downward trend has gained weight in the short term.
Stock Exchange and ETF Effect on Selling Pressure
A detailed examination of the transaction volumes on Binance indicates that investors are taking more selling positions. As the world’s largest cryptocurrency exchange by transaction volume, Binance has a decisive role in market trends. In the futures section of the stock exchange, aggressive sell orders worth more than $1.1 billion were made in just one hour on Sunday. Such sudden volume increases, especially when seen during a price decline, may indicate risk mitigation efforts by major players or intensifying short-term pressures in the market.
There was a net outflow in Ethereum-based spot exchange traded funds (ETF) in the US market for five consecutive days. According to the latest data, a total of $255 million worth of investments in these ETFs were withdrawn from the market. According to CoinShares’ weekly report, global outflow from Ethereum funds reached $249 million. This amount was recorded as the highest weekly outflow since the end of January.
“On the institutional side, we see Ethereum interest hitting a wall locally,” analyst Whale Factor said, noting the impact of the current outflows on the market.
Again, according to analysis, these outflows from investment products indicate a limited period in institutional demand for Ether.
Critical Areas at Technical Levels
According to TradingView data, while the price of Ethereum has remained flat at $2,100, it has moved away significantly from the $2,420 level on May 6, with a 12% decline. $2,090 was recorded on the Bitstamp exchange on Sunday; This level was the lowest point Ethereum has seen since April 17.
CryptoQuant analyst Amr Taha made the assessment in his new research, “While Ethereum was testing significant downside levels, high-volume aggressive sales occurred in Binance.”
Besides this, another indicator that stands out in technical analysis is that investors hold approximately 3.85 million ETH at an average cost of $2,000-2,100. Market participants buying at a price close to cost in this region may stop the price from falling further for a while.
“Bulls need to protect the support area around $2,100 on the daily chart, otherwise ETH could decline into the lower channel range,” warned technical analyst Donald Dean.
Market watchers predict that if Ethereum breaks $2,000, the price may retreat to $1,700.
Market Expectations and Investor Strategies
According to some analysts, Ethereum falling below the critical support level could start a new selling wave. However, it seems possible to limit the declines if investors start buying again in this region and strengthen their positions above $ 2,000. This region is being followed closely, especially after the sharp sales last week.
It is evaluated that support areas with low transaction volume may bring about horizontal price movements, and a new direction can only be shaped by both technical and fundamental developments.
Sharplink CEO stated that the three main factors that will push the Ethereum price up are the passage of the CLARITY Act in the US, the return of general market risk appetite, and the increase in the tokenization of real assets on Ethereum.
Finally, experts point out that Ethereum may continue to be under selling pressure in the short term, but the price may stabilize as buyers re-engage at certain support levels.
