Ethereum’s price is showing signs of weakness, trading below the $3,000 mark amid falling network fees and declining exchange-traded fund (ETF) inflows.
Ethereum (ETH) was priced at $2,945, down 40% from its peak earlier this year. Analysts say the coin has formed several bearish patterns, suggesting the price may fall further.
ETF data from SoSoValue shows that investor demand has slowed. In the past week, Ethereum ETFs recorded $102 million in outflows. This follows outflows of $643 million the previous week. The decline marks the second consecutive month of ETF withdrawals.
Ethereum’s network fees have also dropped sharply. Nansen data indicates the network earned $11.1 million in fees over the last 30 days, a 57% decrease compared with the same period before.
Activity on the network slowed after the Fusaka upgrade, with decentralized exchange (DEX) volume falling to $44 billion in December, its lowest since October last year.
Despite these challenges, there is some positive news. BitMine has begun staking a large portion of its Ethereum holdings. This move is expected to generate significant returns and may help offset some of the recent outflows.
Technical analysis shows Ethereum is in a strong downtrend. The coin has formed a death cross, a head-and-shoulders pattern, and a bearish pennant.
Analysts predict the next support level at $2,615. A fall below this point could push the price toward $2,500.
