Ethereum has been hovering around $2,500 this past week, but is losing conviction among traders. Analysts warn of a potential retest of the $1,800 level.
Declining Volumes and Whale Demand
In recent days, there has been a noticeable decrease in activity from large Ethereum holders. Following a record one-day inflow of 871,000 ETH on June 12, accumulation by large investors has sharply decreased, according to Glassnode data. Net additions slipped below 100,000 ETH per day by June 18.
Exchange data confirms the slowdown: outflows that averaged $393 million last week have fallen back under $150 million. This level is insufficient to maintain whale confidence in the market.
Fading ETF Interest and Its Market Impact
Ethereum recently enjoyed a stable period of growth, receiving net inflows into new ETFs exceeding $1.37 billion. However, on June 17, there was the first minor outflow, leading traders to question whether institutional investments would continue. Additionally, delays by the SEC in making decisions on derivatives linked to staking yields add to the uncertainty.
Technical indicators suggest that ETH is capped by its 50-week exponential moving average near $2,650. Failing to reclaim this line could trigger a drop to the $1,950 Fibonacci level and, if downward momentum persists, toward the heavily watched $1,800 support.
Alternative Solutions and Ethereum's Future
Amid the declining interest in ETH, projects like Remittix are starting to attract attention. Remittix is developing tools for streamlined transactions and cross-border payments, which become relevant in the current market uncertainty. Investors should closely monitor how ETH navigates current challenges and the progress made by Remittix in scaling its network.
Despite current market uncertainty, both Ethereum and alternative solutions still hold potential for recovery. The future of ETH will depend on its ability to hold the support level and how institutional investors react to current conditions.
