Ether (ETH) has seen its value slide sharply in recent weeks, falling around 14% over the past month to trade near $3,724 on Monday after dipping below the $4,000 mark.
Technical patterns and exchange-traded fund (ETF) data are signaling weakness, with analysts warning that the token could be at risk of another leg down — possibly below $3,000.
Institutional Withdrawals Deepen Market Pressure
The latest pullback in Ether’s price appears tied to a decline in institutional demand, particularly visible across spot Ethereum ETFs.
U.S.-based spot Ether ETFs recorded three straight days of outflows totaling $363.8 million, according to data from SoSoValue.
This trend follows a period of strong inflows into Solana ETFs, suggesting that some investors are rotating capital out of Bitcoin and Ether.
Data from StrategicETHreserve.xyz showed that strategic reserves and ETFs collectively reduced their holdings by 124,060 ETH since October 16, pointing to diminishing appetite from institutional and corporate investors.
“Ethereum treasury companies are still going down,” said analyst Ted Pillows in a Monday X post. “With price going down, treasury companies will soon run out of money to buy $ETH. Until these stocks recover, I don’t see a possibility of ETH price recovery.”
Bearish Chart Patterns and Technical Signals Emerge
Since October 7, ETH’s eight-hour chart has been forming a descending triangle — a pattern that typically signals a bearish reversal.
The setup, marked by flat support and descending resistance, broke lower this week.
“ETH has broken below the descending triangle pattern and is currently testing the breakdown level,” analyst CryptoBull_360 said. “If the retest of the breakdown level is successful, it confirms that the downtrend will continue.”
The projected target for the move is $2,870, implying a potential 22% decline from current levels.
Adding to the bearish momentum, the SuperTrend indicator turned red last week — a shift that last preceded a 22% drop in ETH’s price from $4,750 to $3,700 earlier this month.
Pillows said ETH remains at a “crucial support zone” near $3,700 and warned that a fall to $3,500 or even $3,350 could occur if bulls fail to reclaim the $4,000 level soon.