Ethereum Price Warning: Head and Shoulders Pattern Indicates Risk of Falling Below $2,040

Gate News reports that on March 23, Ethereum (ETH) price dropped from $2,385 to a low of $2,025. It is currently below $2,100 and the 100-hour simple moving average. ETH continued to decline after failing to hold $2,220, breaking below $2,150 and $2,120, with a brief dip near $2,050. The hourly chart shows two descending trendline resistances at $2,120 and $2,165. If it breaks above $2,120, the first target will be $2,165, followed by potential rises to $2,200 or even $2,300.

On the downside, key support levels are at $2,040. Below this, the market focus shifts to $2,025, $2,000, and $1,965, with deeper support near $1,880. Crypto analyst Ted Pillows on X forum pointed out that ETH is forming a head and shoulders pattern. If it falls below $2,040, a significant decline is expected.

In terms of capital flow, Ethereum spot ETFs saw approximately $59.94 million net outflow from March 16 to 20. Notably, BlackRock’s ETHA outflow was $69.59 million, with a total net inflow of $11.91 billion historically. Fidelity’s FETH outflow was $61.62 million, with a total net inflow of $2.32 billion. The only ETF with net inflow was Grayscale Ethereum Trust (ETH), with $6.87 million, and a total net inflow of $1.85 billion. As of March 23, the total net assets of Ethereum spot ETFs stood at $12.33 billion, accounting for about 4.79% of ETH’s total market cap.

Market analysts note that the head and shoulders pattern combined with ETF capital outflows may increase short-term downward pressure. Investors should monitor key support levels and closely track market volume and ETF movements to assess potential further price volatility.