- Ethereum faces further declines due to bearish chart patterns and market sentiment.
- Rising ETH supply on exchanges signals increased selling pressure.
- Institutional selling adds to Ethereum’s downward pressure in the short term.
Ethereum—ETH, has been navigating choppy waters lately, shedding 12.08% of value in the past month. While there was a brief 2.69% recovery last week, that momentum is quickly fading. A mix of negative chart signals and growing market concerns indicates that Ethereum could continue to decline in the short term.
Bearish Patterns Indicate More Losses Ahead
Looking at the charts, Ethereum appears to be heading for more losses. Analyst Ali Charts highlights an inverse head-and-shoulders pattern forming on the daily chart. Typically, this pattern signals a rise after a period of consolidation. The right shoulder of the pattern is still taking shape, resembling the left shoulder, where the price decreased. If this trend continues, Ethereum could fall to the $2,800 level.
After hitting that mark, Ethereum could consolidate for as long as 37 days, similar to the left shoulder’s formation. However, this setup points to more price drops before any significant upward momentum begins. The short-term outlook is certainly bearish, with Ethereum likely facing further declines before a recovery can take place.
Increased Exchange Inflows and Institutional Selling Pressure
Another key factor contributing to Ethereum’s possible decline is the rise in its supply on exchanges. On January 15, the amount of Ethereum on exchanges increased from 19,164,848 to 19,214,253 ETH—an uptick of 49,405 ETH. This increase signals growing selling pressure, suggesting that more coins are being moved onto exchanges in anticipation of further selling.
Institutional players are also contributing to the pressure. World Liberty Finance recently moved 1,038 ETH, worth $3.44 million, to Coinbase. This followed a much larger transaction involving 18,536 ETH just days before. These institutional moves indicate a potential sell-off strategy, which could create even more downward pressure on Ethereum’s price.
With Ethereum’s supply increasing on exchanges and institutional investors unloading their positions, the price could continue to face downward pressure in the near future. These developments suggest that Ethereum is not likely to see a sharp recovery anytime soon.
The post ETH Might Plummet Further in the Coming Weeks appeared first on Cryptonewsland.
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