Key Insights
- Ethereum faces resistance at $1,900 with bearish pressure mounting, potentially leading to a correction toward $1,533.
- Ethereum ETFs saw a net outflow of $3.58M on April 1, while total assets stood at $6.54B. This represented 2.83% of Ethereum’s market cap.
- Since February 25, large Ethereum transactions have dropped by 63.8%, indicating reduced whale activity on the network.
In recent weeks, Ethereum price has been struggling. It has been weakened by bearish pressure and multiple factors that could lead to a downward correction.
The cryptocurrency has failed to rise above the $1,900 resistance level. Some analysts have shared their ETH price prediction, forecasting a potential drop to $1,500.
ETH Price Prediction: Ethereum Price Faces Resistance at $1,900
Notably, Ethereum price has failed to breach the $1,900 resistance point multiple times. This has blocked it from experiencing a surge.
The cryptocurrency has shown rising momentum. However, current trade signals suggest that the bearish momentum has accelerated. Following this, ETH price prediction could prompt a bearish price shift.
In addition, the bearish trend has grown stronger through Ethereum’s current price movements. The cryptocurrency is struggling to surpass its primary resistance level at $1880.
The current selling pressure is stronger than the bullish momentum. As a result, the market will struggle to maintain its upward trajectory.
Ethereum ETFs Experience Outflows
More so, Ethereum is facing a declining ETF market performance, which adds more pressure to its price decline. On April 1, Ethereum spot ETFs showed a $3.58 Million net withdrawal from total assets worth $6.54 billion.
This represented only 2.83% of Ethereum’s overall market cap. It highlighted decreased institutional interest and investor participation in Ethereum-related investment products.
Hence, the major outflow of funds from institutional investor portfolios showed an evident loss of confidence after previous weekly inflows.
Ethereum faces mounting bearish pressure as more investors withdraw funds from its ecosystem. This trend could further deteriorate the overall market sentiment.
Bitcoin Dominance Rises, Ethereum Cap Share Declines
Meanwhile, Bitcoin market dominance in the cryptocurrency sector has surpassed 62.5% among cryptocurrencies. In contrast, Ethereum’s market cap share has decreased to 29%.
The increase in Bitcoin dominance has been accompanied by Ethereum’s struggle to maintain momentum. This decline in Ethereum’s market share is important because it highlights a shift in market sentiment.
Reduced Whale Activity Signals a Price Decline
According to analyst Ali Martinez, the number of large ETH transactions has reduced by 63.8% since February 25. The decreased whale activity indicates significant market players have shown reduced participation in the market.
The price decline of Ethereum from above $2,400 to $1,800 on the chart matches the observed shift in investor sentiment.
However, according to analyst Crypto Caesar, Ethereum price is approaching bottom levels. This suggested that the market will stabilize soon.
In his ETH price prediction, the analyst pointed out that Ethereum reached the same position four years ago. This marks a potentially important support area.
Additionally, the analyst has observed that ETH indicates movement toward a robust support zone at $1,800. This level could serve as a foundation for the market to recover.
Therefore, a price recovery may soon happen if this action causes an end to the downward price action.