The price of Ethereum (ETH) continues to oscillate within a narrow range, with strong resistance around 2,000 dollars. Currently, several technical and fundamental factors indicate that surpassing this threshold could be challenging in the short term.

The data from Bitstamp highlight how ETH has moved between 1,810 and 1,960 dollars in the last seven days, marking a phase of consolidation.

The main issues concern the weak activity of the Ethereum network, the decrease in the total value locked (TVL), and the negative outflows of spot ETFs on Ethereum.  

One of the key factors that has negatively impacted the value of Ether is the ongoing outflows of Ethereum-based spot ETFs. Investors have adopted a more cautious approach, reducing their exposure to these financial instruments.  

In the United States, Ethereum ETFs have recorded outflows for seven consecutive days, totaling 265.4 million dollars, according to data from SoSoValue. 

In parallel, other investments related to Ethereum experienced a capital outflow of 176 million dollars, bringing the total outflows for the month to 265 million dollars.  

James Butterfill, director of research at CoinShares, described this situation as the worst ever recorded, stating:  

“This also marks the 17th consecutive day of outflows, the longest negative streak since we started collecting data in 2015.”

The weakening of Ethereum’s price is closely linked to the decrease in network activity. Despite Ethereum maintaining the lead in the weekly volume of decentralized exchanges (DEX), this parameter is in constant decline.

In the last week, the volume on DEX has decreased by 30%, reaching 16.8 billion dollars (data updated as of March 17). 

Some protocols have recorded even more pronounced losses: Maverick Protocol experienced an 85% drop in activity, while Dodo saw volumes decrease by 45%.  

The total value locked (TVL) on Ethereum has also experienced a significant contraction. In the current month, the TVL has decreased by 9.3%, dropping from 77 billion dollars in January to 46.37 billion dollars recorded on March 11.  

Among the most affected protocols we find:  

• – Lido: -30% of the TVL in 30 days  
• – EigenLayer: -30%  
• – Ether.fi: -29%  
• – Maker: -28%  

These data show that, despite Ethereum remaining a dominant player in the DeFi sector, the adoption of the network is going through a phase of weakness.

Technical signals suggest a possible decline to 1,530 dollars  

From a technical standpoint, the four-hour chart of Ether shows a possible bear flag, a bearish continuation pattern. This setup suggests that the price could experience a further decline in the coming days or weeks.  

A bear flag forms when the price bounces in a small ascending channel after a strong drop, before breaking downward again. 

If ETH were to close below the support level of 1,880 dollars, the setup could materialize, bringing the price down to 1,530 dollars, marking a decline of 20% compared to the current levels.  

Furthermore, the relative strength index (RSI) is positioned at 48, an indicator that highlights a prevalence of bear pressures on the market.  

On the opposite side, the bull are trying to keep the price above the level of 1,880 dollars, attempting to achieve a daily close above 1,930 dollars. 

If ETH manages to overcome the resistance of 1,970 dollars, it would invalidate the bear pattern, paving the way for a possible recovery.  

Ethereum is in a delicate phase, with strong resistance at 2,000 dollars and a market showing signs of weakening. The growing outflow of capital from ETFs and the decline in network activity weigh on the price of ETH.  

Investors should closely monitor the support levels at 1,880 dollars and resistance at 1,970 dollars to understand the next market moves. 

In the event that Ethereum loses critical support, the price could drop to 1,530 dollars, highlighting new bear pressures.