Ethereum Faces Risk of Drop Below $3,000 as ETF Demand Weakens

Ethereum (ETH) continues to face pressure as institutional demand cools, with analysts warning that the cryptocurrency could slip below the $3,000 mark. The decline comes as spot Ether exchange-traded funds (ETFs) recorded outflows for three straight days, totaling $364 million, reflecting waning investor confidence.

As of Monday, ETH traded at $3,724, marking a 14% fall over the past month. Data from SoSoValue shows that combined ETF and treasury holdings have dropped by 124,060 ETH since mid-October, signaling reduced participation from large investors and corporations. Analyst Ted Pillows noted that “Ethereum treasury companies are still going down,” warning that without recovery in related stocks, ETH’s rebound may remain unlikely.

Technically, ETH is forming a descending triangle pattern, often considered a bearish signal. The chart suggests a potential 22% correction toward $2,870, especially if prices fail to reclaim the $4,000 level soon. The SuperTrend indicator also flashed red, adding to the bearish sentiment.

Market watchers now see Ethereum hovering near a crucial support level of $3,700, with further downside possible if ETF outflows persist. Experts believe institutional demand will need to stabilize before ETH can mount a meaningful recovery.

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In summary, Ethereum’s near-term outlook remains bearish as capital continues to rotate into other assets like Solana. Unless institutional inflows resume and key support levels hold, ETH may face another leg down toward the $2,800–$3,000 range.

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