ETH Price Action Has Been in No Man's Land This Past Week

ETH price action has been in no man's land this past week, during which it moved below and above the $2000 price level multiple times.

The past week saw cryptocurrency price action remain in no man’s land as units of the token moved below and above the $2,000 price level.

The cryptocurrency managed to close the week slightly in the green, but weak demand highlights uncertainty as price struggled to escape from the noteworthy price tag.

The week that passed was the second week that ETH price managed to avoid more downside.

It has previously experienced significant distribution since December. ETH managed to achieve a 7.54% upside during the week, although it revealed a lot about the state of demand.

What Happened: The past week saw ETH have a shaky week of gaining and losing the $2,000 price level. Interestingly, it dipped below the same level in the second half of the week in what turned out to be a weak leverage shake-down.

Now, the failure of the cryptocurrency to gain enough vertical to push away from the $2,000 price level is an indication of weak demand.

The weak demand was also a reflection of its declining exchange flows.

For context, ETH exchange flows were down to their lowest level so far this year at the time of observation.

The last time ETH exchange flows were that low was in the first week of November last year.

In addition, exchange inflows and outflows were almost evenly matched in the last 24 hours.

The exchange inflows hovered at around 185,357 ETH at the time of writing, while exchange inflows amounted to 185,439 ETH. This further underscores the uncertainty about ETH’s next move.

Why It Matters: Perhaps one of the reasons for the uncertainty could be the fact that ETF outflows were negative during the week. In fact, they have maintained a negative streak every day since 5 March.

ETH flows have so far proved to have a significant impact on price action. This negative outcome may be suppressing ETH market sentiment, hence the subdued activity on exchanges.

The negative ETF flows highlight declining investor interest and its fall out so far with the institutional class. A similar outcome was observed in the whale category.

According to IntoTheBlock data, whale activity declined considerably during the week. Large holder net flows dipped from 480,450 ETH on 18 March to -15,780 ETH as of 22 March.

Can ETH recover from the dampened sentiment amid declining interest from whales and institutions? That remains to be seen, and could significantly depend on the narrative this week.

The uncertainty is a reflection of the overall market conditions. It suggests that investors are still weary of the potential for further downside.

On the other hand, the fact that prices have been on an overall downtrend for the last 3 months, has allowed a big enough discount.

This means discounted prices could be more attractive to potential buyers if market conditions improve.