Ethereum (ETH) Spot Exchange-Traded Funds (ETFs) Witness Significant Outflow of $163 Million This Week

This comes as the bullish sentiment trailing the leading altcoin begins to wane, making it a struggle for the coin's price to break through the $3,400 resistance level.

Key Takeaways

Ethereum (ETH) spot exchange-traded funds (ETFs) have seen outflows of $163 million this week.

The outflows come after a record-breaking $515.17 million in inflows the previous week.

Bearish sentiment is building against ETH as its price struggles to break through the $3,400 resistance level.

The ETH/BTC ratio has fallen to its lowest point since March 2021.

An analysis of the ETH/USD one-day chart reveals the formation of a bull flag, which may lead to a continuation of the uptrend.

After witnessing outflows of $163 million this week, Ethereum (ETH) is facing selling pressure from institutional investors. This comes as the second-largest cryptocurrency struggles to break through a crucial resistance level.

According to data from SosoValue, the outflows from ETH ETFs are now the third-highest on a weekly basis since these funds became tradeable on July 23.

The outflows follow a period of strong inflows, which reached a record-breaking $515.17 million in the week leading up to Donald Trump's victory in the November 5 US election. These outflows began as bearish sentiment builds against ETH.

Earlier this week, BeInCrypto reported that the ETH/BTC ratio had fallen to its lowest level since March 2021. This metric tracks ETH's price performance against Bitcoin (BTC) and serves as an indicator of altcoin strength.

As the year comes to a close, profit-taking activity among ETH holders is increasing, paving the way for the bears to regain market control. This activity is evident in the diverging price action between ETH and BTC.

Moreover, the weakening bullish presence in the market is confirmed by觀察 ETH 下跌的 Aroon Up 线. At press time, the coin’s Aroon Up Line is down at 28.57%.

The Aroon indicator is used to identify trends and their strength. It consists of two lines: Aroon Up and Aroon Down. Aroon Up measures the time since a new 25-period high, while Aroon Down measures the time since a new 25-period low.

When the Aroon Up Line falls, it signals a weakening uptrend or the potential for a trend reversal. This occurs when the price is taking longer to reach new highs, indicating a loss of momentum. A falling Aroon Up line is interpreted as a bearish signal, suggesting that the bullish momentum is fading and a potential downtrend may be underway.

ETH Price Prediction: Is a Bull Flag Forming?

An assessment of the ETH/USD one-day chart reveals the formation of a bull flag, which is an interesting observation. This pattern often precedes a continuation of an uptrend.

A bull flag consists of a rapid price increase (the flagpole) followed by a period of consolidation (the flag). Once the price breaks above the flag's resistance level, it signals a potential resumption of the uptrend.

If ETH's price successfully breaks above the upper line of the horizontal channel at $3,997, the uptrend will be confirmed and the coin's price may rally toward $3,534. However, if buying pressure declines further, ETH's price may plummet to $3,262, invalidating the bullish outlook above.