Analysis: Ethereum has broken below a key technical support level; a similar pattern appeared in January of this year.

PANews reported on March 30th that, according to BIT analysis, Ethereum has broken below a key technical support level and is currently exhibiting a bearish flag pattern, which typically indicates a continuation of the downtrend. A similar pattern appeared in January of this year, after which the price significantly declined; the possibility of this pattern being repeated should be noted.

From a funding perspective, the relevant risks have been confirmed. Current trading volume remains low, reflecting insufficient market participation and a more concentrated allocation of funds. Ethereum ETFs have recorded net outflows since September of last year, and this trend has not improved recently. From a fundamental perspective, structural demand support for Ethereum remains limited. Without a new DeFi cycle to drive it and with on-chain activity yet to show a significant recovery, demand recovery may still take time. The recent slowdown in USDC minting, which has now turned into a net outflow, indicates that the improvement in liquidity within the ecosystem is not yet stable.