Ethereum has been struggling to stay above the $ 2,200 level over the past few days and now risks dropping below $2,100.
Institutional and retail demand have been declining over the past few days, suggesting that investors lack confidence in Ethereum at the moment.
The momentum indicators also paint a neutral picture, with the $2,067 support level likely to come into play soon.
Institutional demand continues to decline
Ethereum has been underperforming since the start of the week, thanks to declining institutional demand.
According to CoinGlass’s ETF page, Ethereum exchange-traded funds (ETFs) recorded an outflow of $32.4 million on Thursday, extending their losing streak to nine consecutive days.
The ETFs have lost millions of dollars since last week, coinciding with Ethereum’s decline from the $2,225 resistance level.
Retail demand has also remained poor over the past few days.
Ethereum’s futures Open Interest (OI) stands at $31.98 billion, down from the $32.7 billion recorded the previous day.
The long-to-short ratio over the last 24 hours reads 0.97. This metric staying below one means that the shorts are paying the longs, indicating a bearish trend.
However, the OI-Weighted Funding Rate stands at a positive 0.0057%.
The mixed derivatives signal indicates indecision among traders, which could limit upside recovery attempts in the near term.
Ethereum price forecast: Will Ethereum resume its rally?
The $ETH/USD 4-hour chart is bearish and efficient as Ethereum has seen $24.39 million in liquidations over the past 24 hours, led by $12.76 million in short liquidations.
The liquidation figures between longs and shorts are close, indicating indecision in the market.
$ETH continues to hold above the $2,067 support level, with the recovery effort limited by resistance levels around the 20-, 50-, and 100-day Exponential Moving Averages (EMAs).
The momentum indicators also paint a neutral picture, mirroring the indecision in the market.
The Relative Strength Index (RSI) stands at 48, close to the neutral 50, indicating a fading bearish momentum.
The Moving Average Convergence Divergence (MACD) lines are also within the negative territory.
If the bulls finally regain control of the market, they could push above the first major resistance at $2,211, followed by the 20-day EMA near $2,225.
A daily candle close above these resistance levels could allow $ETH to push higher towards the 50-day EMA close to $2,244 and the 100-day EMA near $2,326.
The resistance level at at $2,388 could be a strong challenge for the bulls in the medium term.
However, if the $2,067 support level fails and Ethereum continues its decline, buyers could step in at the lower demand zones at $1,909 and $1,741.
The demand zones around $1,524 and $1,405 could serve as strong support levels to ensure the bearish range doesn’t shift lower.
With the broader crypto market still underperforming, Ethereum could continue to consolidate below $2,200 in the near term.
