Ether recently lost the crucial $1,500 support level, indicating a potential deeper correction before any sustained recovery. Data suggests that ETH is trading below its realized price, a bearish sign that typically indicates investor capitulation as holders face losses. Similar instances in June and November 2022 saw significant price drops following a similar setup. Additionally, spot Ethereum ETF flows are witnessing notable net outflows, totaling $94.1 million over the past two weeks. This decline in investor interest is problematic, especially given the institutional demand that previously supported Ether's value. Another concerning factor is the low open interest in Ether's derivatives market, indicating reduced trader participation and confidence. Moreover, Ethereum is facing competition from other layer-1 blockchains, leading to decreased network activity and user engagement. With unique active wallets and transaction volumes dropping significantly, the overall outlook for Ether remains bearish, and there are no signs of a reversal in these trends soon.

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