Ethereum Sinks 1.6% Amid Blast Shutdown and Institutional Outflows

Ethereum's price has fallen by 1.6% to $2,677.74 following the shutdown of the Layer-2 network Blast, which is set to occur on October 26. This development has led to operational uncertainty for users and may destabilize network activity in the near term.

The shutdown of Blast has caused institutional investors to pull $55.37 million from Ethereum exchange-traded products, reducing their exposure to the asset. This outflow represents a concrete reduction in institutional support that can suppress price support and sentiment.

In terms of technical analysis, Ethereum's price is trading below its key moving averages, indicating near-term pressure. However, long-term support remains intact, with the MA-200 still providing a foundation for the asset. Momentum indicators offer a mixed view, with some signals suggesting oversold conditions and potential for a short-term bounce.

The forecast suggests that Ethereum's price will fluctuate between $2,614 and $2,741 over the next few days, with sideways trading likely dominating. The probability of a move higher stands at 45%, leaving a greater risk of further downside under current conditions.