Ether (ETH) had modest gains in the last 24 hours, briefly recovering the psychological level of $3,000. However, reduced demand for ETH, evidenced by heavy Ethereum index funds (ETFs), and a weakened technical structure could cause Ether to drop to levels below $2,000 in the coming weeks.

Key takeaways:

The decrease in demand for Ethereum and negative Ether ETF flows signal aggressive distribution.

The bearish flag pattern of Ether targets the price of $1,850 ETH if key support is lost.

Apparent demand for Ether falls to 10-month lows

An Ethereum demand metric has dropped significantly since mid-December to levels not seen since March 2025.

Capriole Investment's Apparent Demand for Ethereum fell significantly to -3,562 ETH on January 16, down from over 92,000 ETH on December 13. This metric slightly improved to 665 ETH at the time of writing on Thursday.

Related: The funding rate of ETH turns negative, but will Ether bulls take the bait?

The decrease in ETH demand amid falling prices signals aggressive distribution as the price tests key support levels, particularly the psychological level of $3,000 this week.

Apparent demand for Ethereum. Source: Capriole Investments.

Note that the last time demand was this low was in March 2025, when the price was around $2,200. This was followed by a 25% drop in the price of ETH to $1,750 a few days later.

The price of ETH should hold $2,800

As reported by Cointelegraph, the key support for Ether remains in the demand zone of $2,800-$3,000. Here, investors acquired about 9 million ETH in the last six months, creating a potential support zone, according to Ether's cost distribution data.

Analyzing the order book heat map, the pseudonymous analyst Kriptoholder found heavy buying by whales around the same level.

The “support block in the range of $2,800 - $2,850 and the dense buy walls within the range of $2,500 - $2,600 clarify where demand is clustered,” said Kriptoholder in a post on X on Wednesday, adding:

“This structure indicates exactly where institutional buyers are positioned to absorb pullbacks and aim for accumulation.”

ETH order book heat map. Source: Kriptoholder

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

Weekly ETH/USD chart. Source: Cointelegraph/TradingView

The price of ETH is “currently approaching its last line of defense, the support level that has held the price for the last 3 months,” said cryptocurrency investor Batman in his latest post on X, referring to the demand zone of $2,800-$3,000.

“If there is an area for Ethereum to recover, this is it. If not, it will get ugly.”

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

The measured target of the bear flag is $1,850, where ETH could hit the bottom in the case of a prolonged downtrend.