Ethereum traded within a narrow range this week as investor caution and continued outflows from crypto ETFs kept market momentum muted.
As of Friday, Ethereum was priced at $1,580, holding steady throughout the week and marking a 14% rebound from its monthly low.
Despite this, Ethereum faces mounting pressure from rival platforms. Layer-2 networks such as Base and Arbitrum are gaining traction, while competing layer-1 blockchains like Sui and Solana are expanding their presence in sectors like decentralized finance and gaming.
Investor sentiment has also been weighed down by persistent outflows from spot Ethereum ETFs. These funds have recorded eight straight weeks of redemptions, with zero inflows on Thursday and a cumulative net outflow of $2.24 billion this year—highlighting their ongoing struggle to attract interest.
Additional on-chain data indicates that some Ethereum holders are capitulating, offloading their assets at a loss. The Network Realized Profit/Loss (NRPL) metric, which tracks blockchain-wide gains and losses, remains negative—another signal of weakened sentiment.
Ethereum Technical Outlook
Ethereum remains in a bearish trend on the daily chart, still well below the $4,100 peak it reached last year. It’s also trading under both its 50-day and 200-day Exponential Moving Averages and remains beneath the crucial $2,140 support level. That level previously served as the neckline in a triple-top pattern seen on the weekly chart.
However, technical indicators are beginning to turn more favorable. A bullish divergence has emerged in the MACD, with its two lines trending higher. The Relative Strength Index (RSI) has also edged above a descending trendline, suggesting strengthening momentum.
Notably, Ethereum has formed a large falling wedge pattern—a formation typically seen as a precursor to a bullish breakout. Should this breakout occur, Ethereum could target the $2,140 level, which would represent a roughly 35% increase from its current price
