Ethereum Stumbles as Weak Risk Appetite Takes Hold

Ethereum is facing growing pressure as risk appetite weakens in the market. The cryptocurrency continues to trade within the $2,370-$2,550 range, but its fundamental backdrop has deteriorated noticeably. A large ETH transfer worth around $253 million to several exchanges over the past three days has added further pressure to short-term sentiment.

The slowdown in institutional demand through U.S. spot Ethereum ETFs is another factor contributing to the decline. Net inflows totaled just $10.95 million on September 1, down from $87.68 million on August 31, an almost eightfold decline. This sharp decline suggests that institutional support is no longer offsetting selling pressure as effectively as it did in late August.

Geopolitical instability in the Middle East has also contributed to the decline. The RSI (14) remains another source of pressure, as it is still close to overbought territory following the strong August rally. If buyers fail to defend the $2,370 level, the next important target would be support around $2,200.