Ethereum Flashes a Risky Pattern as ETH ETFs Post Their Worst Monthly Outflows on Record

Ethereum price has slumped since late September as the crypto market faces major headwinds as a head and shoulders forms

Ethereum (CRYPTO: ETH) has slumped since late September as the crypto market faces major headwinds. The coin fell to $2,245 on Saturday, a drop of about 20% from its September high. It has also formed a head-and-shoulders pattern, a bearish setup that points to further downside, while ETF outflows continue to climb.

Ethereum ETFs Had the Worst Outflows Ever in October

ETH has moved into a local bear market after falling by 20% from its highest point in September this year. The retreat has coincided with the ongoing ETH ETF outflows, which have jumped to the highest level on record.

SoSoValue data shows that these funds have recorded outflows for five consecutive weeks. They shed $431 million last week, bringing October’s outflows to $1.6 billion, their worst month since approval in July 2024. Before that, the funds attracted $365 million in July, $1.85 billion in August, and $832 million in September.

The outflows were much higher than those of other cryptocurrencies. Bitcoin (CRYPTO: BTC) ETFs had $515 million in outflows, while Solana (CRYPTO: SOL) lost $143 million during the month.

Ethereum’s outflows happened as the crypto market rally lost momentum and as the Crypto Fear and Greed Index moved to the fear zone of 36 after peaking at 82 in August. It also happened as US bond yields continued rising, with the five-year rising to the highest level in two decades.

The Federal Reserve has also maintained a hawkish stance. It raised interest rates in September and held them steady on Wednesday. Officials signaled that another hike is likely in December, as inflation remains stubbornly high.

Ethereum also remained under pressure after the large Binance hack, where North Korean hackers were able to siphon $6.3

Ethereum Price Has Formed a Risky Pattern

The daily chart shows that ETH has formed a series of lower lows and higher lows since late September. It has already slumped below the 200-day Exponential Moving Average (EMA), confirming a bearish outlook.

Most notably, the coin has formed a head-and-shoulders pattern, which leads to more downside. It has also dropped below the 38.2% Fibonacci Retracement level.

Therefore, the token will likely continue falling as sellers target the psychological level of $2,000. This target coincides with the 61.8% Fibonacci Retracement level and is down by 11.18% from the current level.

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