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Ethereum remained on edge over the weekend, as its exchange-traded funds saw significant outflows, exchange balances rose, and mortgage yields declined.
Ethereum (Ethereum) was trading at $3,268, down from last month’s high of $4,104. This price movement mirrors the movement of Bitcoin (Bitcoin), which fell from an all-time high of $108,000 to below $95,000.
Ether fell after data showed that demand for ETFs on Wall Street has fallen in the past few days. according to SoSoValueAll Ethereum funds lost $68 million in assets on Friday after losing $159.3 million on Thursday. They lost $86 million in assets on Wednesday.
These funds now hold over $11.61 billion in assets, representing 2.96% of Ethereum’s market capitalization. In contrast, Bitcoin ETFs have $107 billion in assets, or 5.2% of their market capitalization.
Meanwhile, according to CoinGlass, Ethereum balances on centralized exchanges have risen this year. There are now 15.8 million Ethereum coins on exchanges, up from 15.30 million on December 30.
High exchange balances are a sign that investors are moving their tokens from their wallets to CEX platforms. Transferring cryptocurrencies to exchanges is usually the first step to selling them.
More data shows that open interest in Ethereum futures has fallen from a December high of $31.1 billion, a sign of declining demand. In the past five days, daily open interest has remained at $28.4 billion, down from December’s high of $31.1 billion.
On the positive side, Ethereum and other cryptocurrencies often rebound when open interest declines. For example, the price of ETH began its recent rise in November when interest fell to $14 billion.
Meanwhile, Ethereum bettors are making a lower return. according to StakeRewardsETH has a stake reward rate of 3.10%, which is much lower than Solana (Sol(7% and you can see)TRX) 4.52%. Ethereum staking rewards often decrease when more tokens are delegated to staking pools and when fees decrease. As shown below, Ethereum fees have been on a downward trajectory in the past few weeks.
Ethereum price chart analysis
The daily chart shows that ETH price peaked at $4,104 in December, forming a double top pattern with a neckline at $3,520.
It fell below the 50-day moving average at $3,415, and found major support at the 100-day moving average. Ethereum also found support at the uptrend line connecting the lowest levels since November 15.
There are signs that the currency has formed a head and shoulders pattern, which is a common bearish sign. Therefore, a break below the 100-day moving average and the uptrend line would indicate a downside breakdown, perhaps to $2,820, the highest level since August of last year.
