Ether (ETH) is dancing in a tight range, teasing traders with its moves between $1,810 and $1,960. The $2,000 mark? It’s like that elusive carrot on a stick, always just out of reach. But why is Ether stuck in this loop? Let’s dive into the crypto rabbit hole.
First up, the buzzkill of negative spot Ethereum ETF flows. Investors are playing it safe, pulling out their stakes from Ethereum exchange-traded funds (ETFs) faster than you can say “HODL.” In the past week alone, U.S.-based spot Ether ETFs have seen outflows totaling a whopping $265.4 million, according to SoSoValue. And it’s not just the ETFs; other Ethereum investment products are also feeling the heat with outflows hitting $176 million. CoinShares’ James Butterfill calls it the “worst on record,” marking the 17th consecutive day of outflows.
Now, let’s talk onchain action—or lack thereof. Ethereum’s network activity is taking a hit. Despite holding the crown for decentralized exchange (DEX) volume, it’s been a slippery slope lately. Over the past week, DEX volume has dropped by about 30%, landing at $16.8 billion on March 17. Maverick Protocol and Dodo are among the biggest losers, with activity plummeting by 85% and 45%, respectively.
And then there’s the total value locked (TVL) in Ethereum, which is down 9.3% month-to-date. From a high of $77 billion in January, it’s now sitting at $46.37 billion as of March 11. Lido, EigenLayer, Ether.fi, and Maker are all seeing significant declines in their TVL figures.
But wait, there’s more! Ether’s technicals are flashing warning signs with a potential bear flag on the four-hour chart. This pattern suggests more downside could be on the horizon. If ETH breaks below the flag’s lower boundary at $1,880, we could see a drop to $1,530—a 20% slide from current levels.
The relative strength index (RSI) isn’t painting a pretty picture either, sitting in negative territory at 48. Bulls need to push ETH above $1,970 to invalidate this bearish setup and aim for that elusive $2K target.
In the world of crypto, nothing is ever set in stone. While Ether faces these hurdles, it’s essential for traders to stay informed and make decisions based on thorough research. The crypto market is as volatile as ever, and every move carries its own risks and rewards.
Remember, this isn’t financial advice—just a glimpse into the wild ride that is Ethereum. Keep your eyes peeled and your wallets ready because in crypto land, anything can happen!
