The price of Ether (ETH) has dropped to $1,975, reflecting a significant 5% decline over the past 24 hours. This decrease was further exacerbated by over $111 million in long liquidations, indicating a bearish trend in the market. Analysts are cautioning that the cryptocurrency may face a deeper correction, potentially falling towards the $1,750-$1,850 support zone.
Earlier in the week, ETH struggled to maintain momentum after failing to surpass resistance at $2,200. Factors such as declining demand for Ether and reduced trading volumes have contributed to this weakening performance. Market sentiment remains negative, with Ether's Apparent Demand metric reaching its lowest point in 16 months. As of now, this metric stands at -23,475 ETH, having improved slightly from a low of -58,000 ETH.
In addition to the price drop, spot Ethereum exchange-traded funds (ETFs) have experienced net outflows for seven consecutive days, amounting to $391.8 million. Traders are advised to remain vigilant as the market navigates these challenging conditions.