The Ethereum price support at $4,335 was crashed with increase in Ethereum ETF outflows. If the bear pressure keeps accumulating, the coin could further fall.
Ethereum is currently trading at $4,341 after losing about 0.1 % in the past 24 hours. The second-largest coin by market cap has been through a roller coaster ride as its price went up during the beginning of the week, consolidated, and is now falling. ETH was trading just under $4,500 when the markets opened for trading this week. Come mid-week, the bulls pushed the prices a touch above $4,700. However, following this spike, the traders started to cash out.
In addition to that, the Ethereum ETFs also saw a drastic drop, which further worsened the crypto’s fall. The ETH ETFs netflow crashed from 70 ETH to -1.92 ETH. Before ETH crashed, the prices of the coin were surging despite the ETF inflow reducing. The crash was no surprise as the ETH value was being held together by retailers rather than institutions.
For instance, the rising ETH price despite the ETF inflow falling suggests that the rally was because of retailers and not from institutions. When rallies are not held together by retailers, rather than institutions, they seldom go on for a long time. As such, the ETH price crash was not a surprise. This shows that without institutional reinforcement in ETFs, retail-driven surges can reverse quickly once sentiment shifts or liquidity dries up.
Ethereum crashed from $4,700 to $4,335. During this crash, the prices broke below the critical support level– the 200-day Moving Average ($4,355). With the price still under the hold of the bears, Ethereum is still searching for a support level. Given that the bears keep their foot on the pedal, ETH will crash to $4,265 for support.
