This is why the price of Ethereum is starting to look bearish around $3k.

Ether (ETH) has made modest gains over the past 24 hours, briefly retaking the $3,000 psychological level. However, demand for ETH has waned, evidenced by high outflows from spot Ethereum exchange-traded funds (ETFs), and a weakened technical structure could push Ether below $2,000 in the coming weeks.

Main Receptors:

Declining demand for Ethereum and negative position Ether ETF flows indicate a strong spread.

Ether's bearish flag pattern will target the 1,850 ETH price if key support is lost.

Clearly, demand for ether is down to 10-month lows

One gauge of demand for Ethereum has fallen sharply since mid-December to levels seen at the end of March 2025.

Capriole Investment's Ethereum apparent demand for Ether has dropped significantly from 92,000 ETH on January 16th to -3,562 ETH on December 13th. This measure has improved slightly to 665 ETH at the time of writing on Thursday.

Related: ETH Funding Rate Turns Negative, But Will Ether Bulls Take The Bait?

A drop in demand for ETH amid price declines suggests an aggressive spread as the price tests key support levels, particularly the $3,000 psychological level this week.

The last time demand was this low was in March 2025, when prices hovered around $2,200. A few days later, the price of ETH dropped 25% to $1,750.

The price of ETH should hold $2,800.

Cointelegraph reports that Ether's key support remains the $2,800-$3,000 zone of interest. This is where investors have bought about 9 million ETH in the last six months, which has created a support zone, according to Ether cost base distribution data.

Looking at the heat map of the order book, anonymous analyst Kriptoholder found heavy buying by whales at the same level.

“The support block in the $2,800 – $2,850 range and the dense buying walls in the $2,500 – $2,600 band will explain where demand will gather,” Kriptoholder said in a post on X Wednesday:

“This structure indicates where institutional buyers are positioned to absorb returns and attract accumulation.”

This level coincides with the 50-week moving average and the lower bound of the bear flag, as shown in the chart below.

ETH price is “currently nearing the last line of defense against the support level that has held the price for the past 3 months,” crypto investor Batman noted in a recent post on X in the $2,800-$3,000 interest zone.

“If there's a place where Ethereum can regenerate, this is it. Otherwise, it looks bad.”

Below that, the 200-day MA at $2,460 and the downside of the $2,000 psychological level are key areas to watch.

The measured bearish flag target is $1,850, where ETH could be lower in an extended bearish scenario.

As Cointelegraph reports, Ether can avoid a breakout as long as it holds above $3,000, supported by bullish network metrics and records high demand.