Ethereum price has remained under pressure in the past few months, mirroring the performance of other coins. It was trading at $2,235 on Sunday, a few points below the crucial resistance level of $2,781. So, what next for the coin as ETH ETF outflows surge?
American investors are dumping their Ethereum ETFs
American investors are selling their ETH ETFs aggressively, a sign that they expect the coin to remain under pressure in the foreseeable future.
Spot Ethereum ETFs shed over $93 million on Friday after selling $99 million on Thursday. These funds shed over $431 million last week, the six consecutive side of outflows. They have now shed over $365 million this month after losing $1.6 billion last month.
These outflows are substantially higher than that of other coins, including Bitcoin, Solana, and XRP. The trend seems to be accelerating after the US midterm elections, in which Democrats won by a large margin.
Democrats are on track to win 56 seats in the Senate. They may also win 260 seats on the House of Representatives. Therefore, there is a likelihood that the party’s officials will focus on the crypto industry. For example, Senator Elizabeth Warren, who will chair the Senate Banking Committee has been one of the industry’s biggest critics.
The ongoing ETH ETF outflows have also coincided with the waning on-chain metrics. For example, the total value locked (TVL) in the network dropped to $43.2 billion from this month’s high of nearly $50 billion.
Erthereum’s stablecoin growth has also deteriorated. Its market capitalization dropped to $137 billion from the year-to-date high of nearly $170 billion. This is important because analysts were expecting stablecoins to keep growing, especially in the payments industry.
Ethereum is also not generating as much fees as it did in the past. It has made just made $25 million in fees this quarter down from $34.6 million in the previous quarter. At its peak, Ethereum was making over $549 million in fees and was the most profitable chains in the industry.
More data shows that the DEX volume has continued to fall in the past few months. Its DEX volume fell to $54 million this quarter from a peak of $298 billion in the September quarter of last year.
Ethereum price technical analysis
The daily chart shows that the ETH token has been in a steady downward trend in the past few months. It has dropped from a high of $2,809 in September to the current $2,235. It has already dropped below the 50-day and 100-day Exponential Moving Averages (EMA).
The coin has remained below the Supertrend indicator, a sign that bears remain in control. Therefore, the most likely scenario is that it continues falling, potentially to the key support level of $2,000.