Ethereum Price Prediction as Arthur Hayes Sells, ETF Outflows Continue

Ethereum price rebounded by over 4% on Friday as the crypto market rose cautiously after the hawkish Bank of Japan interest rate hike. However, technicals suggest that the coin has more downside to go as ETH ETFs outflows continue and as Arthur Hayes sells.

Ethereum Price at Risk as Arthur Hayes Sells

ETH price could be at a significant risk of a deep dive as some prominent investors start selling. One of those investors is Arthur Hayes, the founder of BitMex.

Data shows that he moved 508 ETH coins, currently worth over $1.5 million, to Galaxy, potentially to sell them.

This selling could be a sign that he expects the coin to remain under pressure in the foreseeable future.

However, it could be normal selling to fund a purchase. Additionally, he still holds over 4,520 ETH coins, worth $13.38 million, in his $77.6 million portfolio. He also holds other Ethereum derivatives worth over $10 million.

However, more data indicate that a greater number of entities have been moving Ethereum to exchanges over the past few days. For example, Wintermute moved ETH tokens worth millions of dollars to Binance on Friday.

Increased selling by large investors is a sign that they expect the price to retreat over time. Indeed, some crypto market crashes have been attributed to intense selling by companies like Wintermute.

ETH ETF Outflows Continue

The other main reason why the Ethereum price is at risk is that demand for ETH ETFs in Wall Street has largely dried up in the past few weeks.

Data compiled by SoSoValue shows that spot Ethereum ETFs shed over $96 million in assets on Thursday, continuing a trend that started a few days ago. It has now shed $424 million in assets this month, following a loss of $1.42 billion last month.

The ongoing ETF outflows have brought the cumulative net inflows to $12.5 billion, down from the all-time high of nearly $15 billion.

BlackRock’s ETHA is still the biggest Ethereum ETF with over $9.2 billion, followed by Grayscale’s ETHE and Fidelity’s, FETH, which have $2.5 billion and $2.07 billion in assets.

The ongoing Ethereum ETF outflows are notable because they have coincided with inflows in other altcoin ETFs, such as XRP and Solana. XRP ETFs have added $393 million in assets this month, while Solana funds have had $120 million in assets.

As such, while there is no evidence of rotation from Ethereum ETFs to XRP ETFs, this could be happening.

Ethereum and Bitcoin ETFs are having substantial outflows this month as investors remain fearful. For example, the Crypto Fear and Greed Index remains in the fear zone of 25.

Ethereum Options Expiry are Coming Up

Meanwhile, the ETH price may be at risk as traders await a major options expiry that is scheduled to occur later today.

Data shows that the Ethereum positions worth between $460 million and $500 million will expire on Deribit, one of the biggest players in the industry.

The put/call ratio on the platform is slightly above 1, a sign that traders have bearish bets. The maximum pain, where most options are considered worthless, is at $3,100, higher than the current level.

Ethereum Price Technical Analysis Suggests that a Crash is Possible

The daily timeframe chart indicates that the Ethereum price has formed several bearish patterns, suggesting a potential bearish breakdown. It has moved below the Major S&R pivot point of the Murrey Math Lines at $3,750.

The token has also dropped below the 50% Fibonacci Retracement level. It has also moved below all moving averages and the Supertrend indicator.

Additionally, and most importantly, it has formed a bearish flag pattern, a popular bearish continuation sign.

Therefore, the token will likely continue falling as sellers target the November low of $2,622.

A drop below that level indicates further downside, potentially to the psychological level at $2,500.

On the other hand, a move above the resistance at $3,500 will invalidate the bearish outlook.