Ethereum Faces 17-Month Low as Volatility Surges
- Ethereum is struggling to stay above $1,936, with key support at $1,862.
- Massive ETF outflows of 49,000 ETH in two days signal weak investor confidence.
- Bollinger Bands show upcoming volatility, raising the risk of a price drop.
- A break below support could send ETH to $1,745 or even $1,500.
Ethereum is fighting to hold its ground as selling pressure mounts. After a 33% drop in the past month, ETH is now trading at $1,936, barely clinging to a crucial support level at $1,862. If this support fails, Ethereum could see its lowest price in 17 months.
One of the biggest red flags for Ethereum right now is the significant outflow from spot ETFs. Investors have pulled nearly 49,000 ETH from these funds in just 48 hours. This trend suggests that institutional players are losing confidence, at least in the short term.
ETF outflows are often a sign that investors are shifting funds elsewhere, possibly due to concerns over Ethereum’s future price action. While some inflows have occurred, they are not strong enough to offset the selling pressure. With demand weakening, the chances of a recovery in the near term remain low.
Adding to the concerns, Ethereum’s technical indicators suggest that volatility is about to spike. The Bollinger Bands, which measure price fluctuations, are tightening. This pattern typically precedes a sharp move, and with ETH struggling to gain momentum, the most likely direction appears to be downward.
Will Ethereum Hold, or Is a Bigger Drop Coming?
For now, Ethereum is clinging to key support, but the risk of another breakdown is growing. If ETH falls below $1,862, it could quickly drop to $1,745, a level not seen in nearly a year and a half. If the sell-off accelerates, Ethereum might even test $1,500.
There is still hope for a rebound, but it would require a shift in sentiment. The upcoming Pectra upgrade could play a key role in attracting new investment, particularly from institutional players. If the upgrade brings fresh interest and stronger ETF inflows, ETH could push back above $2,000 and aim for $2,141.
For now, traders should brace for increased volatility. Ethereum is at a critical point, and the next move could set the stage for either a deeper correction or a much-needed recovery.
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