Ethereum (ETH) has been under major downward pressure recently with $163 million worth of ETF outflows, suggesting a significant shift in market sentiment and changing investor attitudes.
The latest decline marks the third-largest weekly rally since July, suggesting that investors are starting to take profits as they see price momentum weakening around key resistance levels. Looking at market metrics, the ETH/BTC ratio has fallen to a yearly low, further reinforcing bearish sentiment, according to COINOTAG data.
Ethereum ETF outflows hit $163 million, indicating a bearish trend. ETH faces critical resistance at $3,400. These developments highlight current market dynamics and potential trend reversals.
Ethereum ETF Launches and Latest Developments
According to data from SosoValue this week, there were net outflows from Ethereum ETFs totaling $163 million. This significant decline signals a shift in investor appetite and market sentiment. This outflow is the third major outflow since July and comes on the heels of ETH’s previous rally.
A few weeks ago, Ethereum ETFs saw record inflows of $515.17 million, which was linked to increased market optimism following major political developments. However, currently, market dynamics have forced investors to take a cautious stance, with ETH facing resistance at $3,400.
ETH/BTC Ratio and Aroon Up Line Falling
As Ethereum struggles to maintain its uptrend, some bearish signals have begun to emerge. For example, the ETH/BTC ratio has fallen to its lowest levels since March 2021, increasing selling pressure. This suggests that investors are starting to take profits and a possible decline in Ethereum’s value.
Also, the downtrend of the Aroon Up Line indicates that the bullish momentum is weakening. Currently at 28.57%, this technical indicator tracks the strength of the trend and the decrease in values can be considered as a sign that the bullish trend is weakening. The falling Aroon Up is a warning that the market may make a downward move.
Bull Flag and Critical Resistance Levels
On the daily chart of ETH/USD, the possibility of a bull flag formation is striking. Such formations usually occur during light consolidation periods following strong price movements and, when confirmed, indicate the continuation of the uptrend. However, for this potential bullish outlook to be confirmed, Ethereum needs to break the critical level of $3,997. If a successful breakout occurs, the price can be expected to head towards $3,534. However, investors should be careful, as if this resistance is not overcome, a significant drop towards $3,262 could occur.