Ethereum (ETH) Price: Three-Day ETF Outflow Streak Pushes Price Below $3,500

TLDR

• Ethereum ETFs recorded three straight days of outflows totaling $363.8 million as institutional demand weakened
• Strategic reserves and ETF holdings dropped by 124,060 ETH since October 16, with BitMine as the only active treasury buyer
• ETH price fell 14% over 30 days, dropping from above $4,000 to $3,724 on Monday before testing lower levels
• A descending triangle pattern on the eight-hour chart projects a potential 22% decline to $2,870
• The SuperTrend indicator flashed a bearish signal, similar to October 7 when it preceded a 22% price drop

Ethereum fell below $3,500 on Monday as institutional investors pulled money from ETH investment products. The price dropped 14% over the past month, sliding from above $4,000 to $3,500.

US-based spot Ethereum ETFs experienced outflows for three consecutive days. The total amount withdrawn reached $363.8 million, according to SoSoValue data.

Data from StrategicETHreserve.xyz shows that combined holdings of strategic reserves and ETFs decreased by 124,060 ETH since October 16. This drop reflects reduced demand from major institutional and corporate players.

BitMine is currently the only treasury company making purchases. Analyst Ted Pillows noted that Ethereum treasury companies continue to decline. He said he doesn’t think this trend will continue for long.

Pillows added that treasury companies will soon run out of money to buy ETH as the price continues falling. He believes ETH price recovery is unlikely until these stocks recover.

Capital Rotation Affects ETH Demand

The four-day inflow streak into new US-based spot Solana ETFs suggests ongoing capital rotation from Bitcoin and Ether funds. This movement of money between different crypto products has put pressure on ETH prices.

Ether tested support near $3,557 after declining below $3,800 and $3,750. The price is now trading below the 100-hourly Simple Moving Average.

A contracting triangle is forming on the hourly chart with resistance at $3,650. If a recovery occurs, the price could face resistance near this level.

Technical Patterns Point Lower

Since October 7, ETH price formed a descending triangle pattern on its eight-hour chart. This pattern features a flat support level combined with a downward-sloping resistance line.

Analyst CryptoBull_360 said ETH broke below the descending triangle pattern. The price is currently testing the breakdown level. A successful retest would confirm the downtrend continues.

The triangle’s measured target sits at $2,870, representing a 22% drop from current price levels. This bearish pattern typically resolves when price breaks below flat support and falls by the triangle’s maximum height.

The SuperTrend indicator switched from green to red on Thursday, moving above the price. This indicator tracks price trends and uses average true range in its calculations.

The previous sell signal from this indicator came on October 7. That signal was followed by a 22% price drop from $4,750 to $3,700.

Pillows said ETH price reached a critical support zone around $3,700. He suggested a deeper drop to $3,500 is possible if the price doesn’t quickly reclaim $4,000.

Initial support on the downside sits near $3,580. The first major support zone is located near $3,550. A clear move below $3,550 might push the price toward $3,500 support.

The hourly MACD is gaining momentum in the bearish zone. The RSI dropped below the 50 level, indicating weak momentum.

If Ethereum clears $3,800 resistance, the next major resistance level sits at $3,880. An upside break above $3,880 might call for more gains. In that scenario, Ether could rise toward $4,000 or even $4,050.

However, failure to clear $3,800 resistance could trigger a fresh decline. Further losses might send the price toward $3,420 in the near term, with the next key support at $3,350 and $3,320.

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