ETHUSD- Ethereum Dips by 3% on ETF Outflows, Macro Headwinds
Ethereum (ETHUSD) dipped 3.21% to $2,222.26 amid substantial exchange-traded fund (ETF) outflows, reflecting large investors exiting positions amid geopolitical tensions.
Crypto exchange price chart showed that ETH underperformed a slightly weaker broader market, primarily due to a combination of macro headwinds and coin-specific selling pressure from exchange inflows and ETF outflows.
Sharp decline in prices of top cryptos aligned with negative sentiment in the traditional market. The market experienced a risk-off shift in traditional finance, with the 10-year U.S. Treasury yield surging above 4.5%.
Despite the CLARITY Act’s progress in the U.S. Senate, providing regulatory hope, crypto prices fell. Ethereum dropped 3.2% as surging oil prices above $105 renewed inflation and interest rate hike fears, which dampened appetite for risk assets like crypto.
This was exacerbated by persistent selling in Ethereum’s regulated products: spot ETH ETFs saw a fourth consecutive day of outflows, totalling $190 million, while a massive 585,000 ETH was moved onto exchanges on May 13, signalling distribution by large holders.
Institutional and large-holder selling, amid a hostile macro environment, created an overwhelming supply that drove the price down.
ETH breached the lower trendline of a rising wedge pattern near $2,280, a classic breakdown signal that often precedes further declines. Momentum indicators are weak, nearing oversold territory but not yet indicating a bounce.
The breakdown validated and accelerated the selling pressure, turning previous support into new resistance. Crypto analysts said a daily close back above $2,280 will invalidate the immediate bearish breakdown.
The immediate trend is bearish, anchored to the $2,204 swing low from the recent Fibonacci levels. If this support holds, ETH could range between $2,200 and $2,300. However, a decisive break below $2,204 opens the path toward the pattern’s measured target near $1,900. XRP Slides to $1.44, Ripple Loses Rank to Binance Coin
