Ethereum Faces Bearish Pressure Despite $153 Million Liquidity Inflow

Ethereum [ETH] has seen a substantial inflow of $153 million in liquidity, primarily from Base. However, this significant capital injection has not translated into any upward price movement, with ETH trading flat at press time. This stagnation in price despite the liquidity inflow suggests that there is a growing counterweight of selling pressure in the market.

The lack of price movement indicates that market sentiment is weakening. The support level that ETH has been trading around since mid-May is now under threat, as bearish pressure continues to mount. This situation raises concerns about the potential for a price breakdown in the coming trading sessions.

Adding to the bearish outlook, the Total Value Locked (TVL) in Ethereum's ecosystem has dropped significantly. From $89.13 billion on the 11th of June, TVL decreased to $84.53 billion by press time, marking a $4.6 billion exit in under 48 hours. This substantial outflow of liquidity reflects the weakening market sentiment and raises the possibility that ETH could lose significant value.

The derivatives market also shows signs of declining interest in ETH. Open Interest in ETH futures dropped sharply from $41.43 billion to $34.66 billion, indicating that traders are reducing their exposure or getting liquidated. Long liquidations accounted for $29.56 million, with total liquidations at $13.30 million. This continued selling pressure and decline in long positions could further affect the asset, potentially forcing a further drop in the market.

In summary, while Ethereum has seen a significant inflow of liquidity, the stagnant price and declining market sentiment suggest that the asset is at risk of a price breakdown. Unless buyer momentum returns quickly, ETH could break support and experience a significant price decline in the near future. The significant drop in TVL and the declining interest in the derivatives market further support this bearish outlook.