Donald Trump has officially nominated former Federal Reserve Governor Kevin Warsh as the next president of the institution to replace Jerome Powell in May. Warsh is notably pro-cryptocurrency and has praised Bitcoin as a store of value similar to gold. Although this represents a regulatory advance, traders still project three rate cuts this year under potentially more aggressive monetary policy leadership.
Peter Brandt warns of a bleak technical outlook. According to his charts, Ethereum presents a symmetrical triangle pattern with a classic bearish breakout. Brandt points out that the total capitalization has fallen to the key support of 2.82 trillion dollars and warns that pressure could reduce the global market to 2.41 trillion, representing an additional decline of 15-20% that would directly affect Bitcoin, Ethereum, and XRP.
The second largest cryptocurrency is facing severe difficulties. On Thursday, Ethereum spot ETFs recorded net outflows of nearly $156 million. Fidelity's FETH led the redemptions with $59.2 million, followed by BlackRock's ETHA with $54.9 million. Likewise, Grayscale's ETHE and ETH recorded outflows of $13.1 million and $26.5 million, respectively.
In this context, Vitalik Buterin withdrew 16,384 ETH. Buterin confirmed on X that the funds will be used for an aggressive scalability roadmap and to ensure the long-term sustainability of the Ethereum Foundation. Although the end is technical and seeks to protect self-sovereignty and privacy on the network, the withdrawal contributes to short-term bearish sentiment in a weakened market.
Ethereum is currently trading above $2,733 with a 93% increase in 24-hour trading volume. Analyst Ted Pillows points to the $2,500 to $2,600 range as the next critical support zone where the ETFs and DAT have accumulated the most ETH. It is highly likely that this level will provide short-term support for a potential rebound.
Data from CoinGlass indicates that open interest in ETH futures fell by more than 10%, standing at $34,890 million, although a slight buying sentiment is detected during the dips over the last few hours on Binance and CME.
