- Summary:
- Ethereum price has inched up but its key metrics signal weak institutional and retail demand for the coin, with the downward momentum likely.
Ethereum price inched up on Thursday, gaining 0.5% and trading at $2,021 at the time of writing. The coin is precariously hanging above the psychological $2k mark and a slight decline in the momentum could trigger a downtrend. Ethereum is down by 39% year-to-date and its performance trails other top ten altcoins including Solana, XRP, Cardano, BNB and TRX in that period.
Key Metrics Signal Ethereum Price Downtrend
Ethereum spot ETF is on a long losing streak, registering successive net negative outflows since March 5. This denotes declining institutional attraction towards the coin, and a continuation of the trend will add downward pressure on ETH price.
In addition, the value of Ethereum’s open interest declined by 0.5% in the last 24 hours to $10.3 billion, adding credence to the downward view. In contrast, Bitcoin is on an eight session winning streak at the spot market.
The weak momentum on Ethereum price is affirmed by the RSI indicator which is at 44 on the daily chart as of this writing. In addition, Ethereum’s exchange netflow has risen from -$103 million to $96 million worth of transactions in the last three days. That shows more ETH holders are depositing their coins in exchanges, signaling rising selling pressure.
Ethereum Price Prediction
The momentum on on Ethereum price favours the downtrend to continue below the pivot mark at $2,037. With the sellers in control, the ETHUSD pair will likely go lower, with initial support established at $2,017. A stronger downward momentum will break below that level and potentially push the coin to test the second support at $2,000.
Conversely, the momentum will shift to the upside if ETH breaks above $2,037. That will likely see the coin encounter the first resistance at $2,048. An extended control by the bulls will break above that level, invalidating the downside narrative. Also, such momentum could clear the path to test $2,060.
