Ethereum is experiencing rising bearish pressure, leading to speculation about a potential downswing in its price. As the digital asset hovers near $1,900, Ethereum faces its first week below the $2,000 mark since November 13, 2023. The market trend is uncertain, with ETH creating a consolidation range. The increasing whale activity and institutional outflows signal a potential shift, leaving many wondering if Ethereum will test $1,700 or break out toward $2,200.

Ethereum ETFs See Massive Outflows

One key factor contributing to Ethereum’s bearish sentiment is the ongoing outflows from U.S. Ethereum spot ETFs. Over the past week, Ethereum spot ETFs saw a significant outflow of $143.13 million, marking the third consecutive week of net outflows. The daily outflow reached $35.30 million on March 14, with the total outflows in March so far amounting to $262.96 million.

This decline in institutional support suggests a potential breakdown in ETH’s price, as it signals that major investors are pulling their funds from the cryptocurrency. The lack of institutional interest adds to the growing concern that Ethereum may struggle to maintain upward momentum in the current market climate.

Whales Offload Ethereum

In addition to institutional outflows, Ethereum whales have also been offloading significant amounts of ETH. According to crypto analyst Ali Martinez, over the past week, crypto whales have moved 130,000 ETH out of their wallets, contributing to the growing bearish outlook for the asset.

Whale wallets holding between 1,000 and 10,000 ETH have dropped from 12.87 million to 12.74 million, signaling that large holders are reducing their exposure to Ethereum. Furthermore, a dormant whale reappeared after three years, selling 1,014 ETH worth $1.92 million. Despite the long holding period, the whale only made a profit of $126,000, which is a modest gain given the recent market conditions. This decision to sell indicates that even long-term holders are growing cautious about Ethereum’s price outlook.

Additionally, another whale has opened a short position in the ETH-BTC trading pair. The whale withdrew 3,644 cbBTC (worth $304 million) from Coinbase and deposited 3,034 cbBTC (worth $253 million) on Aave. Furthermore, the whale borrowed 79,638 ETH worth $152 million from Aave, adding to the bearish sentiment surrounding Ethereum.

Ethereum’s Price Range Nears Key Resistance

As Ethereum’s price hovers in a consolidation range, the cryptocurrency is approaching key resistance. On the 4-hour price chart, Ethereum is nearing a resistance trendline near the $1,931 level, coinciding with the center pivot point. This resistance has kept Ethereum from making successful bullish attempts, pushing its price below the $2,000 mark.

At present, the psychological $1,850 level serves as the key support for Ethereum within the consolidation range. If this support fails, Ethereum could retest the critical support level at $1,754. The possibility of a breakout rally remains low given the bearish market sentiment and the continued resistance at the $1,931 level.

The Potential for a Bearish Correction

As the market sentiment continues to lean bearish, the chances of Ethereum breaking out of the consolidation range and testing new highs seem slim. However, if the broader market sees a recovery, Ethereum could challenge the 100-day exponential moving average (EMA) near $2,083. Still, the current trend points toward a potential retest of lower support levels, including the $1,700 mark.

In conclusion, Ethereum is facing increasing bearish pressure, with whales offloading ETH, significant ETF outflows, and resistance at key levels. If this trend continues, Ethereum could see a downturn, with $1,700 being a critical level to watch for potential testing.