Key takeaways:

• Ethereum ETFs experienced three consecutive days of outflows totaling $364 million.

• Since mid-October, strategic ether reserves and ETF holdings have fallen by 124,060 ETH.

• On the eight-hour chart, there is a descending Ether triangle with a target for the ETH price at $2,870.

Ether (ETH) fell 14% in the last 30 days, falling below $4,000 to trade at $3,724 on Monday. However, technical data and ETF data do not show much optimism, which increases the chances of a further correction below $3,000.

Weakening institutional demand lowers the price of ETH

The decline in the price of Ether can be attributed to investor risk-mitigation behavior, which is evident in the case of spot Ethereum ETFs. Over the past two weeks, investors have withdrawn capital from these investment products.

Related: ETFs will introduce institutions to altcoins, just like Bitcoin: Analyst

According to SoSoValue data, US spot Ether ETFs have seen a series of outflows totaling $363.8 million over the past three days.

As Cointelegraph reports, a four-day streak of inflows into Solana’s modern U.S. spot funds means a constant turnover of capital from Bitcoin and Ether funds.

Data from StrategicETHreserve.xyz indicates that since October 16, the collective holdings of strategic reserves and ETFs have decreased by 124,060 ETH.

This decline highlights the decline in demand among major institutional and corporate players.

“Ethereum Treasurys Keep Failing” and BitMine Is the Only Significant Buyer, he said analyst Ted Pillows in Monday’s X post, adding, “I don’t think it will last long.”

With prices falling, “Treasuries will soon run out of money to purchase ETH dollars,” the analyst wrote, adding:

“Until these stocks rebound, I don’t see ETH prices recovering.”

The descending triangle predicts a 22% decline.

Since October 7, the ETH price has formed a descending triangle on the eight-hour chart, characterized by a flat support level mixed with a downward-sloping resistance line.

A descending triangle chart pattern that forms after a robust uptrend is seen as an indicator of a bear reversal. Typically, the setup resolves when the price breaks below the flat support level and falls by the maximum height of the triangle.

“ETH has broken below a descending triangle pattern and is currently testing a breakout level.” he said analyst CryptoBull_360 in a Monday post on X, adding:

“If the retest of the breakout level is successful, it will confirm that the downtrend will continue.”

The measured triangle target is $2,870, which is a 22% decline from the current price level.

On the downside for Ether, the SuperTrend indicator flashed a bearish signal on Thursday when it turned from green to red and moved above the price.

This indicator overlays the chart when tracking the ETH price trend, much like moving averages. It uses the average true range in its calculations, which helps investors identify market trends.

The indicator’s last sell signal occurred on October 7, after which the price dropped 22% to $3,700 from $4,750.

Pillows said ETH’s price is in a “key support zone” around $3,700, adding that a deeper drop to $3,500 is possible if $4,000 is not recovered quickly.

As reported by Cointelegraph, the ETH/USD pair could fall to $3,350 if the $3,700 support level is breached.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.