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Ethereum-based exchange-traded funds (ETFs) are facing ongoing challenges, recording their seventh consecutive week of net outflows. Last week alone, the net outflows from Ethereum ETFs totaled $82.47 million, marking a significant 39% increase from the $49 million recorded the previous week. This continued withdrawal trend highlights the declining institutional interest in Ethereum, with many investors hesitant to engage with digital assets amid ongoing economic uncertainty.
The trend of outflows, which has been in place since late February, reflects the lack of confidence in Ethereum, especially among institutional investors who are increasingly turning to safer alternatives. As a result, the selling pressure on ETH has intensified, leading to a sharp 11% drop in the cryptocurrency’s value just last week.
From a technical perspective, the situation remains unfavorable for Ethereum. The Directional Movement Index (DMI) readings for ETH show that the downward price movement is dominating, with the positive directional index (+DI) sitting below the negative directional index (-DI), suggesting a bearish trend.
Currently, the absence of significant institutional capital could delay any substantial recovery in ETH’s price, particularly in the short term. If demand remains weak, the cryptocurrency may fall out of its narrow trading range and experience further downward movement, potentially reaching a support level around $1,395.
For investors, the current trend of outflows from ETFs combined with ETH’s price being under selling pressure signals that the risk of further declines is high. If market sentiment doesn’t shift, the asset may continue its downward trajectory. However, should there be a positive reversal in institutional interest, ETH could regain momentum and potentially reach a price of $2,114.
Investors should remain vigilant and prepared to adjust their strategies in response to market changes, given the current volatile environment.
