In the past 24 hours, the cryptocurrency market has experienced significant downturns, pushing Ethereum below the crucial $2,000 mark. Rising inflation and unemployment rates globally have led traders to shy away from risky assets, and the withdrawal of $23 million from Ethereum-based funds has intensified the selling pressure.
Institutional Investors Revise Portfolios
The latest Employment Report in the US has heightened fears of an economic slowdown, prompting institutional investors to turn to fixed-income securities. SoroValue data indicates that outflows from Ethereum-focused funds have reached $23 million. BlackRock’s iShares Ethereum Fund saw a $11 million capital loss in a single day, marking the highest daily outflow in the company’s Ethereum investments. Experts warn that institutional withdrawals may continue in light of macroeconomic data.
Technical Analysis Signals Downward Trend
A 'Death Cross' formation has emerged on Ethereum’s price chart, with short-term exponential moving averages falling below long-term averages. Historically, this signal correlates with ongoing selling pressure. Market participants remain cautious ahead of the upcoming U.S. Consumer Price Index (CPI) data release.
Economic Factors and Market Outlook
The $2,200 level is viewed as a critical resistance in technical analysis. If Ethereum manages to close above this level, it may signal a return of buyers. However, the negative outlook due to inflation and unemployment data increases the risk of further declines. Experts advise investors to closely monitor economic calendars and technical levels.
The current period of tension in the Ethereum market is driven by a combination of economic factors and the strategic behavior of institutional investors. While negative trends currently dominate, potential changes in the macroeconomic landscape could significantly impact the market.
