Ethereum Price Drops Below $3,600 amid $252M Outflows
Ethereum price drop triggered notable market developments as ETH slid below $3,600 after failing to clear a key resistance at $4,100. Analyst Michaël van de Poppe highlighted this resistance level, linking it to increased market volatility and shifts in trading strategies. The Ethereum price drop prompted $122.7 million net outflows from exchanges, suggesting a transfer of tokens to wallets and DeFi platforms, which may ease short-term sell pressure. Simultaneously, Ethereum ETFs saw $129 million in outflows, reflecting reduced institutional demand. Despite selling pressure, on-chain transactions surged to 1.7 million daily, indicating sustained network usage. These movements could influence related assets such as BTC and major altcoins, driven by market correlation. Traders should monitor network activity and institutional flows when assessing potential support levels and future price rebounds in the volatile cryptocurrency market.
Bearish
Ethereum’s slide below $3,600 and notable outflows indicate weakening demand and short-term bearish sentiment. Historically, similar drops accompanied by exchange and ETF fund withdrawals intensified selling pressure and market volatility. Although high on-chain activity suggests network resilience, the failure to reclaim key resistance at $4,100 and continued institutional outflows point to potential further downside. In the short term, traders may adopt cautious or bearish positions, while long-term behavior will depend on whether network usage translates into renewed buying interest. Overall, current indicators align with a bearish outlook for near-term Ethereum trading.