Ethereum price remained under pressure on Sunday as sentiment in the crypto industry worsened. ETH token was trading at $3,187, down by over 36% from its all-time high, meaning that it is in a deep bear market. The coin may be about to drop further as a risky pattern nears. Ethereum price is about to form a risky pattern The daily timeframe chart shows that the Ethereum price has remained under pressure in the past few months, moving from the all-time high of $4,950 to the current $3,185. ETH has continued to form a series of lower lows and lower highs, a sign that any attempt to rebound is funding strong resistance. The Relative Strength Index (RSI) has moved from the overbought level of 87 in July to the current 35. This crash happened as the RSI formed a double-top pattern m Meanwhile, the Average Directional Index (ADX) has jumped to 37, a sign that the ongoing downtrend is gaining momentum in the past few days. The coin has also lost key support levels like $4,100, its highest level in December last year. It also moved below the important support level at $4,000, while the 50-day and 200-day Exponential Moving Averages (EMA) are about to cross each other, forming a death cross pattern , one of the riskiest signs in technical analysis. Therefore, the most likely Ethereum price forecast is bearish, with the next key support level to watch being at $2,877, the highest level in June this year. On the flip side, a move above the resistance at $3,500 will invalidate the bearish outlook. Ethereum price chart | Source: TradingView ETH price has numerous bearish catalysts The potential Ethereum price crash has some notable bearish catalysts that may push it lower in the near term. First, data compiled by SoSoValue shows that American investors have continued to dump their ETH ETFs. These funds shed over $728 million assets last week, higher than the $507 million they lost in the previous week. Spot Ethereum ETFs have shed over $1.24 billion this month, erasing the gains made in the past two consecutive weeks. The cumulative inflow has moved from almost $15 billion in the year to $13.1 billion today. They now have $20 billion in assets. Second, the Ethereum price may continue crashing because of deteriorating network activity that is likely caused by the waning participation in the market. Data shows that the number of transactions in the network dropped by 25% in the last 30 days to 45.7 million, while active addresses fell slightly to 8.19 million. Network fees plunged by 44% to 26.9 million. Third, Ethereum’s futures open interest has plunged to $37.4 billion by almost $70 billion in August. One reason for this is the huge liquidation event that happened on October 11. Ethereum’s funding rate has remained in a consolidation in the past few weeks. ETH futures open interest | Source: CoinGlass Therefore, the token will likely continue falling in the near term as its weak fundamentals and technicals align. The post Ethereum price prediction as ETH ETFs shed $1.2 billion appeared first on Invezz
