Recent data from CryptoQuant reveals a decline in the amount of Ethereum (ETH) being withdrawn from exchanges, suggesting reduced selling pressure might not benefit Ethereum as much as expected. On June 12, the withdrawal rate dropped significantly, nearly halving from the previous day. This reduced movement of ETH from exchanges to cold storage or self-custody could lead to price consolidation or even declines if exchange inflows increase.

Currently, Ethereum is trading at $3,494, a decrease from last week’s high of $3,881. Contributing to the bearish outlook is the Taker Sell Ratio, currently at 0.52, indicating that sellers are outnumbering buyers in the market.

The ETH/USD daily chart shows that a double-top formation has been identified at $3,885, a classic bearish reversal pattern. This pattern, coupled with a break below the support level of $3,665, suggests potential for further declines. The next significant support is projected at $3,317.

Additionally, the Awesome Oscillator’s reading of 65.10, accompanied by red histogram bars, indicates a loss of upward momentum. A continued downward trend or a negative reading could see ETH’s price drop to the key Fibonacci retracement level at $3,317, a crucial point to monitor for potential reversals.