Bitaigen Research Ethereum Slides Below $2,350 as Institutional Sentiment Shifts
On Tuesday, April 16, the spot price of Ether fell to $2,254 on Kraken, breaking the $2,350 threshold that had held since early March. The move marked a 1.6% dip from the recent high of $2,465 recorded on March 28, and pushed the 100‑hour simple moving average into bearish territory. A descending trend line now connects the $2,465 peak to the current low, with immediate resistance clustered around $2,300 on the hourly chart.
The price contraction coincided with a net outflow of $210 million from Ethereum‑focused exchange‑traded funds (ETFs) during the week ending April 12, according to data from Bloomberg. BlackRock’s newly launched Ethereum futures ETF saw inflows of $45 million, but the broader suite of crypto ETFs, including Grayscale’s Ethereum Trust, recorded a combined withdrawal of $165 million. Analysts at CoinShares warned that the reduced institutional appetite could prolong the corrective phase, especially as the market tests the $2,250 support zone.
Federal Reserve policy also loomed over the session. The central bank’s decision on April 10 to keep the federal funds rate steady at 5.25%–5.50% reinforced a risk‑off environment across asset classes. Treasury yields rose to 4.78% on the 10‑year note, a level that historically dampens speculative demand for high‑volatility assets such as Ether.
Technical upgrades added another layer of complexity. The Shanghai hard fork, which finalized on April 1, enabled validators to withdraw staked ETH, but the subsequent Dencun rollout—targeted for late May—remains pending, leaving the network’s scalability roadmap partially unfulfilled. Traders noted that the price stayed beneath the 23.6% Fibonacci retracement of the March rally, suggesting that momentum may be insufficient to trigger a bounce without clearer signals from the upcoming protocol enhancements.
Overall, Ether’s descent below $2,350 reflects a confluence of reduced ETF inflows, a cautious macro backdrop, and pending network upgrades.
Ethereum was trading near $2,260 across major venues at 09:30 GMT.
⚠️ Risk Disclaimer: Crypto prices are highly volatile. This is not investment advice.
