Ethereum (ETH) is experiencing significant downside pressure, with the cryptocurrency breaking below the $2,700 level and losing more than 7% in a single day. This decline represents a drop of over 40% from recent highs, reigniting bearish fears across the broader crypto market. Technical analysis reveals ETH trading firmly below the Ichimoku cloud on the 4-hour chart, with the Tenkan-Sen and Kijun-Sen indicators sloping downward and capping upside attempts.
Veteran trader Peter Brandt has added to the cautious outlook, warning that Ethereum's completed symmetrical triangle breakdown could lead to further losses. Brandt's analysis extends beyond ETH, highlighting weakness in total crypto market capitalization which has dropped to key support near $2.82 trillion. He warned that sustained failure at this level could drag total market value toward $2.41 trillion, implying a potential 15–20% market-wide decline affecting major assets including Bitcoin and XRP.
Institutional sentiment remains fragile as evidenced by continued outflows from spot Ethereum ETFs. On Thursday alone, ETH ETFs recorded nearly $156 million in net redemptions, led by Fidelity and BlackRock products. Grayscale's Ethereum funds also saw notable withdrawals, suggesting large investors are de-risking amid liquidity stress and capital rotation.
Adding complexity to the market narrative, Ethereum co-founder Vitalik Buterin recently withdrew 16,384 ETH (approximately $43 million). While such movements often raise short-term market concerns, Buterin clarified that the funds are intended to support Ethereum's long-term development and sustainability. According to Buterin, the ETH will help fund an aggressive roadmap focused on scalability, decentralization, and security, while also supporting the Ethereum Foundation's core mission.
Ethereum's price action reflects a market in limbo rather than one preparing for decisive movement. Analysts note ETH has been locked in a broad range between roughly $2,600 and $3,350 for the past two months, creating what some describe as a forced equilibrium. Without a clean breakout above resistance or confirmed breakdown below support, recent price swings are viewed as short-term liquidity rotations rather than the start of a new cycle. Ethereum currently trades around $2,798, down about 5% on the week.
