Ethereum (ETH) remains within a narrow range and reaching $2,000 for the second-largest digital currency seems challenging. Factors like network activity weakness, decrease in Total Value Locked (TVL), and capital outflows from Ethereum Spot ETFs are putting pressure on ETH price. The outflow of capital from Ethereum Spot ETFs has been a major issue recently with over $265.4 million exiting these funds in the last seven days. On-chain activity on Ethereum has also decreased significantly, with decentralized exchange trading volume dropping by 30% in the past week. Meanwhile, Ethereum’s TVL has decreased by 9.3% monthly from $77 billion in January to $46.37 billion in March. From a technical analysis perspective, the formation of a descending flag pattern on the four-hour Ethereum chart indicates a continuation of the price decline. The key support level at $1,880 is crucial for Ethereum, and if broken, ETH could drop to $1,530. The Relative Strength Index (RSI) is at 48, indicating seller dominance. To invalidate the descending flag pattern, Ethereum needs to stabilize above $1,930 and break through the $1,970 resistance. Negative speculations surrounding Ethereum have also spread to major banks’ predictions. Charter predicts a decrease in Ethereum’s price from $10,000 to $4,000 this year due to the rising popularity of layer 2 networks like Base, weakening Ethereum’s position. Ethereum is currently facing challenges in reaching $2,000. Overall, Ethereum’s situation requires further analysis to determine if ETH will return to higher levels or continue its downward trend. Visit the digital currency price page to track all token prices live.
