Ether price dropped by 8% on January 13, marking a bearish start to the week as it lost its weekly support at $3,200. This decline pushed the price to its lowest since November 21, 2024. More than $90 million in leveraged positions were liquidated, predominantly in longs, as traders reacted to the downtrend. On January 7, open interest in Ethereum futures reached $32 billion, suggesting a bearish sentiment had taken hold among traders. Despite Ethereum's transition to a proof-of-stake mechanism, the supply of ETH has become inflationary over the past ten months due to increased circulation outpacing burns. Benjamin Cowen noted that current supply is close to pre-merge levels, emphasizing sustained low demand. Technically, Ethereum's price may approach support around $2,800, indicating potential further weakness, while immediate bullish signs depend on recovery above $3,000.

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