The price of Ethereum (ETH) is facing a critical juncture this week, trading below the key support level of $4,000. This downturn is driven by a wave of capital outflows from Ethereum ETFs, indicating a growing risk aversion among institutional investors. According to data from the SoSoValue platform, these funds recorded a net withdrawal of $428.52 million this past Monday alone.
A breakdown of the figures reveals the scale of the divestment. BlackRock’s iShares Ethereum Trust (ETHA) led the outflows with $310.13 million. It was followed by the Grayscale Ethereum Trust (ETHE) with $20.99 million and the Fidelity Ethereum Fund (FETH) with $19.12 million. This event marks the largest single-day capital outflow since last August 4, highlighting a significant weakening of institutional confidence following recent market volatility.
Institutional Retreat: Why Are Big Investors Dumping Ethereum?
Last Friday’s massive sell-off appears to have left a deep mark on market sentiment. The withdrawal of funds from ETFs, considered a barometer of interest from large companies, suggests that institutional players are trimming their exposure to higher-risk assets. This trend not only puts downward pressure on the price but also limits the altcoin’s ability to recover in the short term, creating a negative feedback loop.
Reduced institutional participation is often followed by a similar reaction from retail investors. The current consolidation around the $4,000 level is a crucial psychological threshold. A definitive break below this support could trigger a new corrective phase, as technical indicators begin to show signs of waning demand.
Technical Analysis Reveals Bearish Signals for ETH Price
From a technical perspective, the outlook for Ethereum has turned bearish. ETH is currently trading below its Super Trend indicator, located at $4,561, which now acts as dynamic resistance. Trading below this line suggests that market control is in the hands of sellers and that bearish momentum could continue in the near term.
If the negative sentiment persists, technical analysts point to a potential decline toward the $3,626 support level. A loss of this zone could open the door to a deeper fall, with a target near $3,215. Conversely, to invalidate this pessimistic scenario, ETH would need a significant rebound in new demand to push it past the $4,211 resistance. The developments in the coming days will be key to defining the asset’s medium-term trend.
