Despite Ether (ETH) recently reclaiming the $3,000 psychological level, a convergence of concerning indicators suggests its price is poised for a significant downturn, potentially dropping below $2,000 in the coming weeks, driven by sharply decreased demand, evidenced by heavy outflows from Ethereum exchange-traded products (ETPs), and a rapidly weakening technical structure. Key takeaways highlight a dramatic drop in Ether’s apparent demand to multi-month lows, persistent institutional selling, the critical importance of the $2,800-$3,000 support zone as a final bastion for bulls, and the ominous implications of a developing bear flag pattern pointing to targets as low as $1,850.

A primary driver of this bearish shift is the alarming contraction in Ethereum’s apparent demand, a crucial metric tracked by Capriole Investment, which has plummeted sharply since mid-December to levels last observed in March of the previous year. Specifically, Capriole Investment’s Ethereum Apparent Demand for Ether registered a concerning -3,562 ETH on January 16, a stark contrast to the robust 92,000 ETH recorded on December 13; while it has since improved slightly to 665 ETH, this modest recovery does little to offset the preceding precipitous decline, signaling a profound erosion of investor interest. Historically, such low demand in March of an earlier period, when ETH traded around $2,200, was swiftly followed by a roughly 25% price drop