Ethereum Treasuries Slide Continues, but Is ETH Next?

Key Insights

• Ethereum Treasury companies are showing no strong signs of reversal, despite Tom Lee’s BitMine buying again, about $82 million worth of ETH.
• ETH price is still holding above the $2,000 level with the potential to fall toward the $1,700 or $1,500 levels.
• Investors exit Ethereum ETFs for the third straight week even as iShares’s ETHB saw positive inflows for the month of March.

Ethereum which is the largest altcoin, has shown more strength than its Bitcoin (BTC) counterpart over the past few days. To be specific, Ethereum remained above the $2,000 support level after the slight bounce, but BTC lost the $70,000 zone.

While the technical outlook is trying to stay strong, other factors that influence price movements are screaming bearish across the board.

For instance, the trends in price action of Ethereum’s major digital asset treasuries (DATs) and ETF flow data meant more drops could be on the way. As ETH treasuries decline in value, will the Ethereum price follow?

Analyzing the Price Action Trends in Ethereum Treasuries

Even the largest Ethereum treasury, Bitmine (NYSE: BMNR), was facing challenging market conditions. BMNR hit a high of $160 but has since declined to $19 at press time. The figures reflected that the stock was declining and the associated altcoin fell too. The stock is directly related to the ETH price, and so are other ETH treasuries’ stock prices.

SharpLink Inc. (Nasdaq: SBET) crashed from around $40 to $6. The stock was not showing any signs of bullish reversal, hinting that the drops in the ETH price may just be on the horizon. Furthermore, Dynamix Corporation (Nasdaq: ETHM) and Bit Digital Inc. (Nasdaq: BTBT) faced a similar fate that hit the larger treasuries.

This decline in the prices of stocks focused on Ethereum treasuries was happening even as Tom Lee’s Bitmain continued to scoop up more ETH. For instance, in the past 24 hours, Bitmine acquired 40K ETH valued at more than $82 million. These tokens were bought in two transactions, each having 20K ETH.

These price trends showed that these institutions were struggling to keep up with the recent volatility in crypto. Such price trends could slow down accumulation of most of the companies, which means a reduced capital inflow into Ethereum.

Ethereum Price Prediction: Will $2,000 Continue Holding?

On the daily chart, Ethereum’s price was held tightly above $2,000, though there were periods of brief dips below this threshold. If this level were held and market conditions improved, Ethereum’s price could be expected to break past $2,200 and reach $2,400.

Conversely, losing this key support level would mean a new low may be playing out in the next few weeks. That is, Ethereum price could drop to $1,700 and failure to find support here would send the altcoin to $1,500. This analysis suggested that the $2,000 level was doing the heavy lifting and could produce a final pump.

As bulls struggle to keep the altcoin above this level, capital outflows from Ethereum ETFs made it harder. What’s in the details, then?

Capital Outflows in Ethereum ETFs Surge

As per numerical data for Ethereum ETFs since their launch, the altcoin saw its third consecutive week of net outflows. The outflow this week, at about $42 million, was small compared to the previous two weeks, which totaled $60 million and $206 million.

This small outflow was due to positive inflows into the iShares Staked Ethereum Trust ETF (ETHB), which recorded $400 million in inflows in March. This meant that ETHB inflows were insufficient to drive up ETH and its products’ prices.

As capital outflows from ETH ETFs surge and Ethereum treasury companies’ prices weaken, it suggests the altcoin may be in for the same. However, traders need to look for shifts in market structure to confirm the direction bias.

The post Ethereum Treasuries Slide Continues, but Is ETH Next? appeared first on The Market Periodical.