The cryptocurrency market is back under strain this week, with Bitcoin, Ethereum, and XRP extending their declines amid a widespread risk-off mood. Persistent ETF outflows, cooling technical indicators, and weak derivatives data continue to weigh on investor confidence, forcing traders to adopt a more defensive approach.

Despite short-term weakness, the broader picture reveals a market in transition — one where shifting institutional flows and technical signals could set the stage for the next big move.

Bitcoin Tests $87,000 Support as ETF Outflows Continue

Bitcoin (BTC) is holding just above $87,000 support, a level that’s proving crucial after multiple days of selling pressure. According to data from SoSoValue, Bitcoin spot ETFs have now logged three straight sessions of outflows, with Monday alone seeing roughly $142 million withdrawn.

Currently, cumulative ETF inflows sit around $57.26 billion, while total net assets hover near $115 billion — a clear sign of cooling institutional demand in the short term.

If ETF redemptions continue, Bitcoin could drift lower toward $84,450–$83,800, both key support zones that traders are watching closely.

Key Bitcoin levels to watch

• Immediate support: $87,000
• Critical range: $84,450 – $83,822
• Resistance: $90,000 (descending trendline)

From a technical standpoint, all major moving averages — the 50-day EMA ($93,331), 100-day EMA ($98,987), and 200-day EMA ($101,833) — are trending downward, reinforcing a bearish market structure.

Meanwhile, the Relative Strength Index (RSI) has fallen to 42, signaling growing selling momentum. But there’s a glimmer of hope: the MACD indicator has formed a bullish crossover, with the blue line rising slightly above the signal line. If momentum strengthens and histogram bars turn positive, BTC could rebound toward the $90,000 mark.

Ethereum Dips Below $3,000 but Attracts Institutional Inflows

Ethereum (ETH) has slipped below the psychological $3,000 threshold, trading near $2,920 as bearish momentum builds. However, Ethereum is showing resilience where Bitcoin is faltering — ETF inflows are back on the rise.

After a week-long outflow streak, Ethereum ETFs saw $85 million in inflows on Monday, pushing total net inflows to $12.53 billion and net assets to $18.20 billion. This reversal suggests renewed institutional confidence, even as price action remains cautious.

Ethereum technical outlook

• Immediate support: $2,900
• Major support: $2,623
• Resistance: $3,185 (50-day EMA)

All three key moving averages — 50-, 100-, and 200-day EMAs — are sloping lower, confirming persistent downward bias. The RSI is sitting near 45, still above oversold territory but pointing weaker.

For Ethereum to stabilize, traders are watching the $3,185 level closely. If the MACD maintains its buy signal and price breaks above this resistance, it could trigger fresh buying activity, signaling a rebound toward $3,300.

Example for traders: A sustained close above $3,185, combined with rising volume, may confirm the start of a short-term reversal. Until then, ETH remains in a wait-and-watch zone.

XRP Slips Despite Strong ETF Inflows and Weak Futures Activity

XRP continues to lose ground, holding near $1.77 support, with resistance capped below the $2.00 mark. Interestingly, while price momentum remains soft, XRP’s ETF segment tells a different story.

Since launching in mid-November, XRP ETFs have posted inflows every single trading day — not one outflow so far. As of Monday, XRP ETFs drew $44 million in new inflows, lifting cumulative totals to $1.12 billion with $1.25 billion in net assets.

However, the derivatives market isn’t following suit. Futures Open Interest dropped from $3.54 billion to $3.46 billion on Tuesday, signaling weakening participation and confidence. This suggests that even with strong spot ETF demand, low derivatives activity could cap XRP’s upside potential.

In plain terms: Investors are accumulating XRP through ETFs but aren’t yet betting big on its near-term price action — a sign of guarded optimism.

Why the Risk-Off Sentiment Is Spreading

The current downturn is part of a broader risk-off shift sweeping across financial markets. Investors are growing cautious due to:

• Macroeconomic uncertainty: Concerns over global growth, inflation, and shifting interest rate expectations.
• Profit-taking behavior: After months of optimism and strong gains earlier this year, many traders are securing profits.
• ETF rebalancing: Institutions are adjusting capital allocation between Bitcoin, Ethereum, and XRP ETFs, affecting liquidity and near-term volatility.

Together, these factors are tightening liquidity and triggering price corrections across the crypto landscape.

However, there’s an important silver lining: inflows into Ethereum and XRP ETFs suggest that institutional investors aren’t exiting crypto entirely — they’re simply rotating capital toward assets viewed as undervalued or higher potential in the near term.

Conclusion

The crypto market remains fragile, with Bitcoin testing crucial levels and Ethereum clinging to ETF-driven optimism. XRP continues to attract capital but struggles with weak derivatives participation.

For short-term traders, the message is clear — focus on key technical levels and wait for confirmation signals before entering positions. For long-term investors, this correction phase could present strategic accumulation opportunities, particularly as institutional inflows hint at confidence returning beneath the surface.

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FAQ’s

Why are Bitcoin and Ethereum prices falling?
Both assets are seeing renewed selling pressure due to ETF outflows, global risk-off sentiment, and bearish technical setups.

What does “risk-off sentiment” mean in crypto?
It’s when investors reduce exposure to volatile assets, like cryptocurrencies, and shift toward safer options such as bonds or stablecoins.

How do ETF flows impact crypto prices?

• Inflows = Institutional buying → supports prices.
• Outflows = Profit-taking or repositioning → pressures prices lower.

Can Ethereum rebound soon?
Potentially. Sustained ETF inflows and a break above $3,185 resistance could trigger renewed buying. But weak technicals suggest patience is key.

Why is XRP struggling despite positive ETF data?
Its futures market open interest is falling, showing traders remain cautious despite strong ETF demand. A pickup in derivatives activity would improve sentiment.

What price levels matter most this week?

• Bitcoin: $87,000 (support) / $90,000 (resistance)
• Ethereum: $2,900 (support) / $3,185 (resistance)
• XRP: $1.77 (support) / $2.00 (resistance)