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Ethereum has declined more than 36% since August as large holders reduce positions and institutional investors pull capital from spot ETFs.
Wallets holding between 10,000 and 1 million ETH have steadily decreased since mid-December, while U.S. spot Ethereum ETFs have seen outflows exceeding $345 million over the past four trading sessions.
Such movements often spark panic among retail holders driving further selling and dampening confidence in the market.
Outflows from U.S. spot Ethereum ETFs have added to the bearish sentiment. SoSoValue reports that over the past four trading sessions, these ETFs shed more than $345 million.
Weak demand from institutional investors has likely kept retail interest muted thereby reinforcing a cautious Ethereum price prediction.
On-chain metrics suggest fundamentals are also under pressure. According to DeFiLlama, total value locked (TVL) across Ethereum based DeFi protocols has fallen from a September peak of $257 billion to $175 billion.
Declining TVL usually signals slower network usage and capital inflows which aligns with a bearish Ethereum price prediction.
Derivative markets are reflecting similar trends. CoinGlass data shows Ethereum futures open interest dropping from $70 billion in August to $39 billion at press time, indicating a sharp decline in speculative positions nother factor supporting a cautious Ethereum price prediction.
Ethereum has lost more than 36% of its value since August, intensifying concerns highlighted in this price prediction analysis.
On the daily chart, Ethereum price has been forming a symmetrical triangle since early November.
A break below the lower trendline typically signals short term bearish continuation thereby reinforcing this Ethereum price prediction scenario.
Charts also hint at a large inverse cup and handle pattern with a neckline at $2,619.
A drop below the psychological support of $3,000 could trigger further declines toward this neckline thereby making it a critical level for traders to watch consistently with a near term Ethereum price prediction.
If Ethereum decisively breaks below $2,619, selling pressure could intensify, potentially pushing the price down to $2,121.
Conversely, a rebound above the $3,269 resistance, near the 61.8% Fibonacci retracement could invalidate the bearish outlook and pave the way for higher targets while at the same time offering a more optimistic Ethereum price prediction.
Overall, this Ethereum price prediction suggests that traders should watch key support and resistance levels closely as the market navigates whale activity, ETF outflows, and weakening on-chain fundamentals.
