According to Cointelegraph, Ether (ETH) has been trading within a narrow range of $4,200 to $4,500 for the past two weeks, reflecting a decline in both spot and institutional demand. This stagnation has led to increased bearish sentiment among traders, with some predicting a potential drop to $3,500 before any recovery occurs. The market sentiment has turned negative, exacerbated by Bitcoin's recent dip below $100,000, which has intensified "sell calls" in the market. Market intelligence firm Santiment noted a rise in bearish keywords since late August, when Ether reached its all-time high of $4,950. Despite this, Santiment suggests that market movements often counter crowd expectations, potentially signaling a buying opportunity.
Ether's spot demand has significantly decreased, with trading volume plummeting from $18.5 billion on August 22 to $2.6 billion on September 8, marking an 85% decline, according to Glassnode data. This drop in volume indicates reduced investor participation and weaker trader conviction. Although the spot Cumulative Volume Delta (CVD) has shown slight improvement as selling pressure eased, it remains below levels observed in late August. The low spot volume and negative volume delta highlight Ether's vulnerability to price declines. Institutional investors have also retreated, with spot Ethereum ETFs experiencing over $1.04 billion in net outflows over six consecutive trading days, contributing to the selling pressure.
Currently, Ether is testing the lower trendline of a symmetrical triangle at $4,280 on the daily chart, as reported by Cointelegraph Markets Pro and TradingView. A daily close below this triangle could attract more bearish activity, potentially pushing the price down to $3,600, a 16% decrease from current levels. Michael van de Poppe, founder of MN Capital, suggests that Ether could drop to the $3,500-$3,800 demand zone before recovering. Analyst Ted Pillows identified significant liquidity clusters between $3,600 and $4,000, indicating that Ether might first dip to collect this liquidity before reversing. Another potential rebound area is $3,745 if the $4,000 support is breached. This article does not provide investment advice, and readers should conduct their own research before making investment decisions.
