Ethereum (ETH) Approaches $2,000 Psychological Support Level Amid ETF Outflows
As Bitcoin experiences a quick pullback under $83,000, Ethereum is approaching its $2,000 psychological mark. With a nearly 12% pullback over the past 24 hours, Ethereum’s market cap has fallen to $252 billion.
Ethereum Price Tests $2,000 Support
In the 4-hour price chart, Ethereum shows a steep correction with two consecutive breakdowns. After breaching the $3,000 support, it found crucial backing near $2,500.
However, a market crash in late February caused a second breakdown, pulling Ethereum down to around $2,100. The announcement of the U.S. Crypto Reserve led to a V-shaped reversal, attempting to retest $2,500.
Despite this, the inability to maintain bullish momentum led to a quick bearish exit, with Ethereum falling nearly 15%. Currently, ETH trades at $2,093. The downward trend has caused the Chaikin Money Flow Index to drop from 0.32 to near zero, indicating reduced buying pressure. Nevertheless, the daily RSI hints at a potential bullish divergence, suggesting possible consolidation near $2,000.
Ethereum ETF Outflows Continue
As Ethereum faces potential breakdown below $2,000, U.S. Ethereum Spot ETFs reported another day of outflows. On March 3, net outflows reached $12.10 million, marking the 8th consecutive day of outflows since February 20.
Most Ethereum ETFs saw net-zero outflow on Monday, while BlackRock sold $16.06 million worth of Ethereum. Conversely, Bitwise recorded an inflow of $3.96 million.
Will ETH Price Break Below $2,000?
Given the current Ethereum price trend, the market indicates consolidation followed by potential breakdowns. Ethereum might consolidate around the $2,000 psychological support level. However, broader market conditions, such as potential tariff wars from the U.S., could result in a significant crash in the global and crypto markets, possibly pushing Ethereum below $2,000 to test the vital $1,800 support level. On a bullish note, if consolidation occurs, Ethereum may target overhead resistance near $2,400 or $2,530.
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