"No buying pressure"...Ethereum 'struggles' in bearish channel

▲ Ethereum (ETH), cryptocurrency decline/AI generated image

A bearish outlook suggests that if Ethereum (ETH) fails to break out of its short-term downtrend channel, it could fall to the $1,822 to $1,850 range, and with the added factor of funds flowing out of Ethereum spot ETFs, market tension is increasing.

According to the cryptocurrency media outlet Bitcoinist on May 31 (local time), selling pressure dominated Ethereum for most of May, and analysis suggests that the downtrend could continue into early June. Cryptocurrency analyst Burak Kesmeci stated via X (formerly Twitter) that if Ethereum fails to break the $2,033 resistance level in the coming days, it could drop to the $1,822 to $1,850 range.

Kesmeci cited Ethereum being trapped within a descending channel on the 4-hour chart as the main basis for his bearish outlook. A descending channel is formed by two trend lines connecting lower highs and lower lows, with the upper trend line acting as resistance and the lower trend line acting as a price support zone.

He analyzed that there is still a possibility of further decline for Ethereum, given the weak price momentum and the continued movement within the descending channel. In particular, he predicted that if it fails to break the $2,033 resistance level, which is the upper boundary, the price could fall to the $1,822 to $1,850 range. Conversely, he also presented a scenario where if Ethereum breaks above $2,033, it could surge towards $2,400.

Signs of weakening demand were also evident in the fund flows of Ethereum spot ETFs. Last week, over $241 million flowed out of Ethereum spot ETFs, marking three consecutive weeks of large net outflows. Bitcoinist reported that the price sluggishness over the past three weeks reflects this market environment.

According to CoinGecko data, Ethereum's value has fallen by nearly 15% in the last three weeks. As of the time of writing, Ethereum's price was approximately $2,023, with no significant fluctuations in the last 24 hours. The market sees the ability to break the $2,033 resistance level and the fund flows of Ethereum spot ETFs as key variables determining short-term direction.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. This content should be interpreted for informational purposes only.*