Ether Faces Potential Deeper Correction Amid Structural Weakness

Ether's recent decline below the $2,000 mark on Friday has raised concerns about a possible deeper correction in the coming weeks or months. According to Cointelegraph, the cryptocurrency's price is showing signs of structural weakness as it struggles to maintain the psychological support level of $2,000. Analysts suggest that Ether's price may continue to fall towards the $1,750-$1,850 support zone, with negative demand further increasing its downward potential. Data from TradingView indicates that ETH/USD was trading at $1,975, marking a 5% decrease over the last 24 hours. This drop coincided with over $111 million in long Ether liquidations. Earlier in the week, the pair failed to break through the $2,200 resistance, as spot Ether exchange-traded fund (ETF) outflows, declining decentralized exchange (DEX) volumes, and a reduced ETH futures premium hindered its recovery. Trader Onur noted in a Friday X post that despite strong long-term narratives, short-term demand remains thin. Fellow analyst CryptoWZRD predicted a further decline towards the $1,800 support zone after Ether closed below $2,200 on Thursday. Analyst and trader Ted Pillows echoed this sentiment, stating that the drop below $2,100 signals weakness and foreshadows further declines for ETH. As reported by Cointelegraph, a close below the 50-day simple moving average at $2,000 could lead the ETH/USD pair to $1,900 and subsequently to the $1,850-$1,750 level. Ether's apparent demand has reached a 16-month low, flipping negative due to traders adopting a risk-off stance amid geopolitical uncertainty and macroeconomic challenges. Capriole Investment's Ethereum Apparent Demand metric reveals that demand for ETH has been negative since March 3, bottoming at -58,000 ETH on March 16, marking a 16-month low. The metric has since improved to -23,475 ETH at the time of writing. Meanwhile, spot ETH ETFs have recorded net outflows for seven consecutive days, totaling $391.8 million. Global Ether exchange-traded products (ETPs) also experienced $27.2 million in outflows last week, highlighting a reduced appetite for ETH among institutional investors. These developments underscore the challenges facing Ether as it navigates a period of structural weakness and declining demand.