Ethereum price fell for the second straight day on Friday as institutional investors took a step back from the asset as they weighed rising geopolitical risks.
According to data from crypto.news, Ethereum (ETH) price fell 4% from the Wednesday high of around $2,400 to $2,300 at press time where it had been consolidating.
Ethereum price fell as spot Ethereum ETFs recorded $75.94 million in net outflows over the past day. It marks their first outflow day since April 8, breaking a 10-day inflow streak that drew in over $630 million into the products.
The break off from the inflow trend suggests that institutional investors could likely be booking profits out of their positions. This shift occurs as they turn cautious over a political deadlock regarding a ceasefire between the U.S. and Iran, while the Strait of Hormuz continues to remain a primary point of friction.
While it might not be a major cause for concern yet, market analysts are closely monitoring whether the outflows from Ethereum ETFs signal a long-term trend.
This comes as the daily Ethereum chart also presents a cautious outlook. Notably, Ethereum price is currently testing an ascending trendline support, a break below which could accelerate selling pressure.
Technical indicators also seem to support a bearish narrative. The MACD lines have formed a bearish crossover while the daily RSI has tilted towards the neutral threshold, a sign that bullish momentum is fading.
Hence if Ethereum price breaks below the ascending trendline support, the next logical move would be towards $2,200 next. If the asset loses this support level as well, the net target for bears could be $2,000.
On the contrary, a successful rebound above $2,400 could invalidate the bearish setup and pave the way for a recovery toward previous monthly highs.
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