Ethereum Faces Selling Pressure Amid Market Downturn
The cryptocurrency market experienced significant downturns in the last 24 hours, pushing Ethereum below the psychological support level of $2,000 to $2,068. Rising inflation and unemployment rates in global markets have led traders to distance themselves from risky assets. The withdrawal of $23 million from Ethereum-based funds by institutional investors intensified the selling pressure. Technical indicators suggest that the downward trend may persist in the short term.
Institutional Investors Revise Portfolios
The latest Employment Report released in the United States has heightened concerns about an economic slowdown. This development has prompted institutional investors to turn towards fixed-income securities. Data from SoroValue indicates that outflows from Ethereum-focused funds have reached $23 million.
BlackRock’s iShares Ethereum Fund suffered a capital loss of $11 million in a single day. This marks the highest daily outflow recorded in the company’s Ethereum investments. Experts warn that the institutional withdrawal may continue based on macroeconomic data. If capital outflows persist, Ethereum’s recovery could be delayed, as institutional investors play a significant role in market stability.
Technical Analysis Signals Downward Trend
A “Death Cross” formation has emerged in Ethereum’s price chart, with short-term exponential moving averages falling below long-term averages. Historically, this signal correlates with periods of ongoing selling pressure. Market participants are exercising caution ahead of next week’s U.S. Consumer Price Index (CPI) data release.
The $2,200 level is seen as a critical resistance in technical analysis. If Ethereum can close above this level, it may signal a return of buyers. However, the negative outlook from inflation and unemployment data increases the risk of further declines. Experts advise investors to closely monitor economic calendars and technical levels.
Market Sentiment and Future Outlook
Despite the current bearish sentiment, some analysts remain optimistic about Ethereum’s long-term prospects. Factors such as the continued adoption of Ethereum’s blockchain technology, growing interest in decentralized finance (DeFi), and Ethereum’s transition to a proof-of-stake consensus mechanism could provide long-term support for its price.
Short-term market movements may remain volatile, but investors should consider macroeconomic developments, institutional activity, and key technical levels when making investment decisions. Ethereum’s future trajectory will largely depend on how it navigates these headwinds in the coming weeks.
