Ethereum’s price has been stuck in a tight range between $4,200 and $4,500 for the past two weeks, leading to growing bearish sentiment among traders. Low trading volume, dropping by 85% since late August, indicates waning demand for the crypto asset, while institutional investors are also pulling back, with ETH ETFs experiencing over $1 billion in outflows. Analysts caution that ETH could potentially drop as low as $3,500-$3,800 before showing signs of recovery. 🧐 📈
The market has shifted dramatically from bullish to bearish: analysts and traders alike are now expecting a dip below the $4,950 all-time high recorded in late August, which is triggering concerns about Ethereum’s price trajectory.
Several factors have contributed to this shift:
* **Weak Spot Trading:** Spot trading volume has plummeted from $18.5 billion on August 22nd to just $2.6 billion on September 8th, a sign of declining demand for ETH.
* **Negative Institutional Flows:** Ethereum ETFs have seen over $1 billion in outflows in the past six days, indicating that institutional investors are losing faith.
But despite this bearish outlook, some analysts remain optimistic:
* **Michael van de Poppe** believes ETH could fall to $3,500-$3,800 before rebounding. ⬆️
* **Ted Pillows** anticipates a potential dip towards $3,600-$4,000 before a reversal.
The market’s future remains uncertain as Ethereum continues to trade within the tight range of $4,200-4,500. If the $4,000-$4,200 support holds, it could pave the way for a rebound and help ETH regain its upward momentum.
**Key takeaway:** A deeper correction towards $3,500 is a possibility if bulls fail to defend the crucial support level of $4,000-$4,200.