The cryptocurrency market experienced significant downturns in the last 24 hours, pushing Ethereum 
$2,266 below the psychological support level of $2,000. Rising inflation and unemployment rates in global markets have led traders to distance themselves from risky assets. The withdrawal of $23 million from Ethereum-based funds by institutional investors intensified the selling pressure. Technical indicators suggest that the downward trend may persist in the short term.
Institutional Investors Revise Portfolios
The latest Employment Report released in the United States has heightened concerns about economic slowdown. This development has prompted institutional investors to turn towards fixed-income securities. Data from SoroValue indicates that outflows from Ethereum-focused funds have reached $23 million.
BlackRock’s iShares Ethereum Fund suffered a capital loss of $11 million in a single day. This marks the highest daily outflow recorded in the company’s Ethereum investments. Experts warn that the institutional withdrawal may continue based on macroeconomic data.
Technical Analysis Signals Downward Trend
A “Death Cross” formation has emerged in Ethereum’s price chart, with short-term exponential moving averages falling below long-term averages. Historically, this signal correlates with periods of ongoing selling pressure. Market participants are being cautious ahead of next week’s U.S. Consumer Price Index (CPI) data release.
The $2,200 level is seen as a critical resistance in technical analysis. If Ethereum can close above this level, it may signal a return of buyers. However, the negative outlook from inflation and unemployment data increases the risk of further declines. Experts advise investors to closely monitor economic calendars and technical levels.
