Ethereum faces increased bearish pressure after falling below $2,700. Veteran trader Peter Brandt warns of further drop in Ethereum price due to ongoing selling, low liquidity, and outflows from spot Ethereum ETFs.
Veteran Trader Peter Brandt Warns Ethereum Price Crash
Peter Brandt shared a 24-hour Ethereum price chart highlighting a symmetrical triangle pattern formation. He claims that the price has breakdown and flashes a classic bearish signal, indicating further downside risk.
Peter Brandt shared another chart depicting a right-angled broadening pattern for the Crypto Total Market Cap. It has fallen to the key support of $2.82 trillion after the crypto market crash.
Ethereum Daily Price Chart. Source: Peter BrandtHe cautions that continued bearish pressure could push the total market cap down to $2.41 trillion, representing a 15-20% decline from current levels. Major assets such as Bitcoin, Ethereum, and XRP may experience further losses.
The bearish outlook comes as Ethereum struggles with broader market headwinds. The second-largest cryptocurrency is down over 46% in the past few months. Moreover, spot Ethereum ETF outflows suggest continued bearish sentiment among institutional investors.
Crypto Total Market Cap. Source: Peter BrandtOn Thursday, spot Ethereum ETFs saw net outflows totaling nearly $156 million. Fidelity’s FETH led with $59.2 million in redemptions, followed by BlackRock’s ETHA at $54.9 million. Also, Grayscale’s ETHE and ETH saw at $13.1 million and $26.5 million in outflows, respectively.
Vitalik Buterin Withdraws 16,384 ETH
A few days after warning of a potential crypto industry decline due to speculation and lack of real-world use, Ethereum co-founder Vitalik Buterin withdrew 16,384 ETH.
In an X post on January 30, Buterin confirmed that the withdrawn ETH would be used to meet two goals. He plans an aggressive roadmap for Ethereum to maintain its performance and scalability, without compromising robustness, sustainability, and decentralization.
Moreover, these funds will help the Ethereum Foundation ensure long-term sustainability and protect Ethereum’s core mission. This includes supporting the “core blockchain layer and users’ ability to access and use the chain with self-sovereignty, security, and privacy.”
Buterin is also exploring secure decentralized staking options, which would enable greater allocation of staking rewards toward these long-term goals.
Such withdrawals may contribute to short-term bearish sentiment or increased selling pressure, particularly during periods of market weakness.
Ethereum Price Action
Ethereum price fell more than 7% in the past 24 hours, with the price currently trading at $2,733. The 24-hour low and high are $2,689 and $2,939, respectively. Furthermore, the trading volume has increased by 93% in the last 24 hours, indicating interest among traders.
Analyst Ted Pillows pointed out the $2,500-$2,600 as the next major support zone. This is where spot ETFs and DATs have accumulated their most ETH. The level is most likely to provide short-term support for a potential rebound.
Ethereum 1-Day Price Chart. Source: Ted PillowsCoinGlass data indicates a buy-the-dip sentiment in the derivatives market in the last few hours. Total ETH futures open interest fell over 10% to $34.89 billion in the past 24 hours. Four-hour ETH futures open interest on CME and Binance declined by more than 0.30% and 0.40%, respectively.
Source: https://coingape.com/peter-brandt-predicts-deeper-ethereum-price-crash-vitalik-buterin-withdraws-eth/
