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Ethereum drops below $2,000 amid institutional withdrawals

Ethereum drops below $2,000 amid institutional withdrawals

GrafaGrafa2025/03/10 12:10
By:Mahathir Bayena

Ethereum's (CRYPTO:ETH) price has fallen below the critical $2,000 mark, primarily due to significant withdrawals by institutional investors.

In the last 24 hours, Ethereum traded at approximately $2,069, reflecting a broader downturn in the cryptocurrency market.

This decline has been attributed to rising inflation and unemployment rates, prompting traders to withdraw from riskier assets.

Recent data indicates that institutional investors have pulled out $23 million from Ethereum-based funds, intensifying the selling pressure on the cryptocurrency.

BlackRock's iShares Ethereum Fund reported an alarming capital loss of $11 million in a single day, marking the highest daily outflow from its Ethereum investments.

Experts suggest that these trends may continue as macroeconomic indicators point toward an economic slowdown.

The latest U.S. Employment Report has raised concerns about potential recessions, leading many institutional investors to shift their focus toward fixed-income securities.

Technical analysis reveals a "Death Cross" pattern on Ethereum's price chart, where short-term moving averages fall below long-term averages.

Historically, this formation is associated with ongoing selling pressure in the market.

Traders are advised to exercise caution ahead of the upcoming U.S. Consumer Price Index (CPI) data release next week.

The $2,200 level has emerged as a critical resistance point for Ethereum; closing above this threshold could indicate a resurgence of buyer interest.

However, the prevailing negative outlook stemming from inflation and unemployment data raises concerns about further declines.

Market analysts recommend that investors closely monitor both economic indicators and technical levels for potential trading opportunities.

At the time of reporting, the Ethereum (ETH) price was $2,070.93.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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