Ethereum Price Forecast: ETH risks decline to $2,258 as exchange reserves continue uptrend

Ethereum price today: $3,110

• Ethereum exchange reserves increased by over $545 million during the weekend, indicating rising selling pressure.
• Ethereum ETFs recorded $515.5 million inflows last week, its highest since launch.
• Ethereum risks decline to $2,258 if it falls below the 14-day EMA and $2,817 key support level.

Ethereum (ETH) is up 1% on Monday after ETH ETFs hit a record $515.5 million inflows last week. However, rising exchange reserves and realized losses could trigger bearish pressure for the top altcoin.

Rising Ethereum exchange reserve could induce bearish pressure

Ethereum's exchange reserve continued its uptrend over the weekend, rising by over 181,000 ETH worth ~$545 million. An asset's exchange reserve increase indicates that selling pressure could rise. Hence, the chart below shows that investors are potentially selling ETH.

Ethereum Exchange Reserve

Additionally, Ethereum's Network Realized Profit/Loss shows investors realized nearly $1 million in losses on Monday, per Santiment data.

Meanwhile, spot Ethereum ETFs in the US recorded net inflows of $515.5 million last week — their highest weekly net inflows since launch on July 23, per Coinglass data. Last week, the products also posted their highest single-day positive flows with inflows of $295.5 million on November 11.

The demand from US institutional investors pushed the global ETH ETF net inflows last week to $646 million, which is 5% of their total asset under management (AuM), per CoinShares data.

According to Bloomberg analyst Eric Balchunas, most of these positive flows could be traced to the lingering effects of the US presidential election's aftermath.

Ethereum Price Forecast: ETH risks decline to $2,258 if key support level fails

Ethereum is trading near $3,100 after sustaining over $42.39 million in liquidations in the past 24 hours. Liquidated long and short positions accounted for $28.43 million and $13.96 million, respectively.

ETH has been consolidating near the $3,000 psychological level in the past five days since seeing a rejection at the resistance level close to $3,400.

ETH/USDT daily chart

The top altcoin has been held above $3,000 by the 14-day Exponential Moving Average (EMA) support. If ETH declines below the 14-day EMA and the $3,017 support level fails, it could find support at the $2,817 key level, which bulls have defended for nearly four months — April to July.

A breach of the $2,817 key level could send ETH toward $2,258.

The Relative Strength Index (RSI) is above its neutral level and tilting sideways, indicating bulls are finding it difficult to maintain momentum. Meanwhile, the Awesome Oscillator (AO) has posted consecutive decreasing red bars above its neutral level, indicating a weakening bullish momentum.

A daily candlestick close above the $3,400 level will invalidate the thesis and flip ETH's outlook to a bullish picture.

---