Ethereum's recent bullish momentum is slowing down due to a decrease in interest from institutional investors and whales. ETH is currently priced at $3,620.
Decrease in Open Interest for Ethereum Futures
Data from the Chicago Mercantile Exchange (CME) indicates that open interest in Ethereum futures has declined to $6.2 billion, marking a five-day low. This significant drop suggests institutions may be reducing their positions in Ethereum.
Decline in Whale Activity
On-chain data confirms that major investors are pulling back. There has been a 339% decrease in netflow among large holders over the past week, indicating waning confidence in ETH's short-term price trajectory. Typically, increasing netflow signifies accumulation, while a decrease suggests reduced conviction, potentially adding selling pressure.
Price Outlook for Ethereum
Ethereum is currently facing increased selling pressure. Despite a 17% surge in trading volume over the last 24 hours, the price has declined, forming a negative divergence. If this trend continues, ETH could fall to the support level of $3,524. A breach of that level may lead to further decline towards $3,314. However, if buying interest returns, Ethereum may rebound and target a retest of the $3,859 resistance zone.
Ethereum's struggle to regain $4,000 highlights growing bearish sentiment in the crypto market. The decline in CME futures open interest and whale accumulation are significant factors that may influence the altcoin's next move.
