Ether (ETH) has seen modest gains over the past 24 hours, briefly regaining the psychological $3,000 level. However, reduced demand for ETH, as evidenced by enormous Ethereum spot ETFs and a weakening technical structure, could see Ether fall to sub-$2,000 levels in the coming weeks.

Key takeaways:

• Degenerating Ethereum demand and negative Ether ETF spot flows signal aggressive distribution.

• Ether bear flag pattern reaches ETH price at $1,850 if key support is lost.

Apparent demand for ether falls to 10-month lows

One indicator of demand for Ethereum has dropped sharply since mid-December to levels last seen in March 2025.

Capriole Investment’s apparent Ethereum demand dropped significantly to -3,562 ETH on January 16 from over 92,000 ETH on December 13. This rate has improved slightly to 665 ETH at the time of writing on Thursday.

Related: ETH Funding Rate Turns Negative, but Will Ether Bulls Take the Bait?

Degenerating demand for ETH amid falling prices signals aggressive distribution as the price tests key support levels, most notably the psychological $3,000 level this week.

Please remember that the last time demand was this low was in March 2025, when the price was around $2,200. Then a few days later, the price of ETH dropped by 25% to $1,750.

The ETH price must remain at $2,800

As Cointelegraph reports, the key support for Ether remains the demand zone at $2,800-$3,000. This is where investors have purchased approximately 9 million ETH over the past six months, creating a potential support zone, according to Ether’s cost base distribution data.

Looking at the heat map of the order book, a pseudonymous Kriptoholder analyst found that whales are buying heavily at the same level.

“A support block in the $2,800-2,850 range and dense buying walls in the $2,500-2,600 range clarify where demand is concentrated,” Kriptoholder he said in a Wednesday post on X, adding:

“This structure pinpoints exactly where institutional buyers are positioned to absorb withdrawals and achieve target accumulation.”

This level coincides with the 50-week moving average and the lower boundary of the bear flag, as shown in the chart below.

ETH price is “currently approaching the last line of defense, the support level that has supported the price for the last 3 months” he said cryptocurrency investor Batman in his latest post on X, referring to the demand zone at $2,800-$3,000.

“If there’s an area where Ethereum can bounce back, it’s here. If not, it’s going to look bad.”

Below, the 200-day MA at $2,460 and the psychological level of $2,000 are key areas to watch on the downside.

The measured bear flag target is $1,850, where ETH could bottom in the event of a prolonged downtrend.

As Cointelegraph reports, Ether could avoid a crash as long as it stays above $3,000, supported by bullish network metrics and record staking demand.