Ethereum is facing fresh downward pressure after falling below the $2,700 level, reigniting fears of a deeper correction. The second-largest cryptocurrency is now down more than 7% in a single day and more than 40% from its recent highs, reflecting a broader shift towards risk-off sentiment across the crypto market.
Market liquidity remains thin, institutional demand has weakened, and selling pressure continues to dominate short-term price trends, creating the basis for increased volatility.
Peter Brandt warns of further downside risks
Veteran trader Peter Brandt further reinforced his cautious outlook, warning that Ethereum's recent technical failures could lead to further losses. While sharing his chart analysis, Brandt pointed out a perfect symmetrical triangle breakdown on the Ethereum price chart, a pattern typically associated with a bearish continuation.
beyond $ETH Brandt himself also highlighted the weakness of the broader crypto market as a whole. His analysis of the crypto market cap shows that key support has fallen to near $2.82 trillion. He warned that continued failures at this level could push the market cap to $2.41 trillion, leading to a 15-20% decline across the market and putting pressure on major assets such as Bitcoin, Ethereum and XRP.
ETF outflows increase selling pressure
Institutional sentiment surrounding Ethereum remains fragile, as reflected by continued outflows from Spot Ethereum ETFs. Even just on Thursday, $ETH The ETF recorded nearly $156 million in net redemptions, led by products from Fidelity and BlackRock. Grayscale’s Ethereum fund also saw notable withdrawals.
These outflows suggest that large investors remain risk-averse, reinforcing Brandt's view that Ethereum's weakness has more to do with liquidity stress and capital turnover than any individual technical issue.
Vitalik Buterin Moves 16,384 $ETH
Adding a new layer to the story, Ethereum co-founder Vitalik Buterin recently withdrew $16,384. $ETH. While such moves often cause short-term market concerns, Buterin made it clear that the funds are intended to support Ethereum's long-term development and sustainability.
According to Buterin, $ETH will fund an aggressive roadmap focused on scalability, decentralization, and security, while also supporting the Ethereum Foundation's core mission. He has also expressed interest in improving the decentralized staking structure to better align rewards with Ethereum's long-term goals.
Key support levels to focus on
Ethereum’s price movement continues to reflect a stalled market rather than a market gearing up for a decisive move. Analysts note: $ETH For the past two months, the stock price has been locked in a broad, well-defined range between about $2,600 and $3,350, with no clear trend emerging on higher time frames. This prolonged decline has been described by some as a forced equilibrium, where neither the bulls nor the bears have enough confidence to take control.
Unless we see a clean break above resistance or a breakout below support, recent price movements should be viewed as short-term liquidity rotations rather than the start of a new cycle. For now, Ethereum remains in a macro stalemate, trading around $2,798, down about 5% for the week, as the market continues to wait for definitive signals.
