Ethereum breaks below key support level, the reappearance of the bearish flag pattern raises downward caution

According to independent analyst Markus Thielen, Ethereum has broken through a key technical support level and is currently showing a bearish flag pattern, with prices touching around $2004. This pattern is highly similar to this year's trend, and caution is advised as this pattern may reoccur.

On the funding side, market trading volume remains sluggish, with insufficient participation willingness. Ethereum ETFs have continued to see net outflows since last year, with no recent improvement. On the fundamental side, the new cycle of DeFi has not yet started, and there are no obvious signs of recovery in on-chain activity. Recently, the minting volume of USDC has significantly slowed down and turned into net outflows. The improvement in liquidity within the ecosystem is still not stable, and structural demand support remains limited.