Ethereum (ETH) Bears Dominate as Investments Fade in 2022
Ethereum is the largest altcoin by market value. However, Ether has not performed well over the past few weeks as far as institutional investors are concerned. ETH’s best week this month was the one ending April 2022.
Nevertheless, investment products continued witnessing outflows this week, dropping to $7 million. That meant a massive plunge from $97 million from the prior week.
CoinShares data shows overall investment products introduced plummeted to 11 in 2022 Q1 from 24 in 2021 Q4. Meanwhile, ETH remains at the crosshair of institutional investors this week, noting outflows worth nearly $17 million.
Inflows on all different assets somehow negated Ethereum’s bearishness, with the total outflows standing at $7.2 million.
Though market volatility is not sparing any crypto, Ethereum sees pessimistic reactions from investors as the leading alternative token failed to ensure a significant uptick. ETH recoiled from the 50% FIB resistance level following the March-April rally that propelled Ethereum to the $3,600 highs.
Moreover, ETH tested $3,200, matching the 38.2% Fibonacci level before declining towards the crucial 23.6% area at $2,815 on April 26, showing a 6.5% price drop. Fortunately, the alt tested the zone as a support and prevented further declines.
Nevertheless, the downside phase halted the Ethereum supply recovery seen during the earlier upsurge, and supply in profit dropped by 21% in a month. Such conditions may scare individuals as far as investing is concerned.
Nevertheless, ETH remains primed for upticks since retail investors support the alt regardless of their fears. That is why HODLing or accumulation sentiment continues to dominate on longer timeframes. Meanwhile, mid-April sessions saw a brief bump as Ethereum holders resorted to liquidations, but this conviction can trigger a swift recovery with time.
While publishing this content, Ethereum traded at $2,884, with a slight 0.33% increase over the past day. However, the crypto market struggles with bearish actions following the latest crash. Bitcoin remains below the coveted $40K, changing hands near $39,408 at this publication. Broad market sentiment could be essential in ETH’s directional bias.
What are your thoughts about Ethereum’s current condition? You can leave a reply in the section below.