Ethereum price faces bearish rounded top as ETF outflows rise
Ethereum price has slipped into a bearish rounded top pattern after repeated failures near $2,400. The market is now watching the neckline around $2,150, which has flipped into resistance. At press time, Ethereum price was around $2,115, down nearly 12% over seven days.
Fund flows and positioning are pressuring sentiment. U.S. spot Ethereum ETFs logged nine straight sessions of outflows, with about 114,871 ETH (roughly $244.79 million) leaving over one week. Another week saw around $215 million exit. This reduced buy-side liquidity as Bitcoin attracted steady institutional inflows.
Derivatives data also points to heavy leverage. A trader opened a $100 million, 23x leveraged ETH short, tied to a liquidation price near $2,149—clustered close to the $2,150 resistance zone. CoinGlass liquidation heatmaps show concentration between $2,150 and $2,170, creating a potential liquidity barrier above current price. Funding rates have turned negative again and open interest remains elevated, suggesting downside positioning still dominates.
Catalysts worsened the mood. After the U.S. Senate Banking Committee advanced the CLARITY Act (May 19), Ethereum markets reacted with a “sell-the-news” move and traders locked in profits. JPMorgan also warned that upcoming Ethereum upgrades (Glamsterdam, Hegotá) may weaken the fee-burning mechanism, keeping ETH structurally inflationary.
Technically, Ethereum price remains below Supertrend resistance (~$2,318) and the 50-day moving average (~$2,264). A breakdown from the rounded top could target roughly $1,850–$1,900. Bulls can invalidate the setup if Ethereum price reclaims and holds above $2,150, which could trigger a squeeze toward $2,250 and potentially $2,400.
Bearish
The article’s core is bearish for traders: Ethereum price is aligning with a daily bearish rounded top, while both flow and positioning data point to persistent selling pressure. Nine consecutive U.S. spot Ethereum ETF outflow sessions (with large weekly ETH withdrawals) removes steady institutional demand—similar to prior periods when ETF outflows coincided with trend deterioration and rallies failed at key resistance.
On the derivatives side, heavy leverage is concentrated around $2,150–$2,170 via liquidation heatmaps, and a large 23x ETH short opened near $2,149 increases the odds of volatility spikes if price fails to reclaim resistance. Negative funding rates and elevated open interest also resemble typical “continuation” conditions in downtrends.
Technically, Ethereum price is below key trend levels (Supertrend/50-day) and the rounded-top neckline has turned into resistance. That combination usually increases the probability of a breakdown toward the stated $1,850–$1,900 zone in the short term.
However, the setup is not fully confirmed: repeated bounces from ~$2,000 and the clear invalidation level at ~$2,150 mean a reclaim could squeeze shorts toward $2,250–$2,400. Longer term, ETF flow direction and the market’s belief in ETH’s fee-burning sustainability (JPMorgan’s warnings) are likely to dominate whether this turns into a sustained bear phase or a choppy range.