Ethereum Forecast: ETH on-chain data shows mixed investor sentiment amid price decline

Ethereum price today: $3,360

• Ethereum exchange reserve and options data indicate bearish bias among traders.
• However, ETH's increased open interest and spot exchange net outflows show investors are still bullish.
• Ethereum could fall to $2,300 if it validates a triple top pattern by declining below the $3,000 psychological level.

Ethereum (ETH) is down 3% on Tuesday and could decline to $2,300 if the $3,000 support level fails. The recent decline follows mixed investor sentiment across the top altcoin's on-chain metrics.

ETH on-chain activity indicates mixed investor sentiment

Ethereum exchange reserves began trending upwards on Tuesday after seven days of seeing downward pressure, per CryptoQuant data. The rising exchange reserve suggests ETH saw selling activity, particularly after reaching a four-month high of $3,547 on Monday.

ETH Exchange Reserve

Options traders are also gradually flipping bearish as ETH implied volatility "has shifted sharply toward puts over calls," noted QCP analysts. "Growing concerns about downside risks may intensify, particularly with tonight's FOMC minutes and Wednesday's PCE data on the horizon."

However, on the futures front, Ethereum is showing a bullish picture after it's open interest (OI) surged to a new all-time high of $21.22 billion in the Asian session on Tuesday, per Coinglass data.

Open interest is the total number of outstanding contracts in a derivatives market. An uptick in OI signifies new money is coming into the market.

A similar bullish trend is evident in the spot market as the top altcoin has recorded high net outflows across leading crypto exchanges like Binance, OKX, Coinbase, Kraken and Bybit in the past 24 hours, per Coinglass data. Net outflows in the spot market suggest buying activity among investors.

ETH Spot Exchange Netflows

Meanwhile, Ethereum ETFs recorded net inflows of $2.9 million on Monday.

Ethereum Price Forecast: ETH could decline to $2,300 if it validates triple top pattern

Ethereum is down 3% on Tuesday following $76.23 million in ETH futures liquidations in the past 24 hours. Liquidated long and short positions accounted for $64.48 million and $11.75 million, respectively.

ETH appears to have posted a triple top pattern after seeing a rejection near an ascending trendline and declining below the $3,400 key level.

ETH/USDT 4-hour chart

If ETH validates the pattern by declining below the $3,000 support level, it could find support near the $2,817 key level, which buyers have defended for nearly four months — April through July.

A decline below the $2,817 level will send ETH to find support near the $2,300 level, a historically high demand zone.

The Relative Strength Index (RSI) is declining and testing its neutral level midline, indicating rising bearish momentum.

A candlestick close above the ascending trendline will invalidate the thesis.