Ethereum Price News: ETFs Book 6-Day Streak of Outflows – ETH to $3K?

Ethereum (ETH) has been battered severely during the latest market downturn, shedding 26% in the past 30 days alone and swinging to negative territory on a year-to-date (YTD) basis.

It has been a rough start for cryptos in November, after the head of the Federal Reserve, Jerome Powell, wrapped out a chaotic October by casting doubts on a December interest rate cut.

Ethereum ETF Inflows – Source: Farside Investors

The market reacted dramatically to his comments and cryptos once again plummeted – although not with the strength seen back on October 10 when President Donald Trump’s hostilities with China caused a flash crash.

Ethereum-linked exchange-traded funds (ETFs) have been closing the last 6 days with net withdrawals amounting to $837 million. This indicates a bearish trend as the market panicked over both Trump’s and Powell’s comments, although it does not necessarily mean the end of the bull market.

Relative to the total amount of assets under management (AUM) of these vehicles, this is a relatively small setback. Investors seem to be confident that this is just a temporary pullback as the market digests the latest data.

High Volumes Confirm Relevance of $3,400 Level

The daily chart shows that ETH lost its $4,000 psychological support and has now made a lower high, meaning that this could be the beginning of a downtrend.

ETH/USD Daily Chart (Coinbase) – Source: TradingView

If a price channel is starting to form, the first stop would be the $3,000 level in the near term, followed by a much deeper push to $2,700 if negative momentum accelerates.

The Relative Strength Index (RSI) has not yet reached its extremes. Hence, this could be just the beginning of a correction that started after ETH failed to stay above $4,700 multiple times.

Volumes back when ETH trespassed the $3.4K threshold spiked. This reflects a potential long-squeeze and high liquidations confirm it. Hence, late buyers may get the chance to scoop up ETH at $3,000 soon unless we get some unexpected positive catalyst.

For now, the Fear and Greed Index currently sits at 24, down from a 30-day peak of 62, indicating a radical shift in investors’ sentiment. Paired with the loss of key supports, this favors a bearish price prediction for Ethereum.

Hourly Chart Offers Attractive Entry for Short Sellers

Crypto liquidations in the past few days have spiked as Ethereum (ETH) has dropped from around $4,200 to $3,300 at the time of writing – a 21% loss in just 10 days or so.

Data from CoinGlass shows that over $3.4 billion worth of long positions have been wiped out of the market since November started. At a point when market participants were already opting to stay on the sidelines after the October 10 flash crash, this latest wave of liquidations does not contribute to improving sentiment at all.

ETH/USD Hourly Chart (Coinbase) – Source: TradingView

Moving to a lower time frame, the hourly chart offers some interesting entries for a short position. The $3,340 level seems to have acted as a pivot both during the latest uptrend and downtrend for ETH.

Hence, if the price goes back to this level, traders could catch a big swing downwards and book a 2.5x risk-reward trade if everything goes as expected. The big wicks left behind on Tuesday may cushion the drop temporarily, but the market will likely go for those to fill orders.

Hence, the risk-reward ratio could be even higher if you have the stomach to keep the trade open despite the spike in volatility that will likely take place once the price hits those areas.