Ethereum (CRYPTO: ETH) price slipped into a bear market in May as it retreated from $2,470 to $2,000. This retreat may continue further in June as it formed an inverted cup-and-handle pattern, and as Wall Street investors continue dumping their ETF holdings.

Ethereum Price at Risk as ETH ETF Outflows Jump

American investors have continued to sell their ETH ETFs in the past few months. Data shows that these funds experienced over $540 million in outflows in May, paring back all the inflows added in the previous month. 

These funds have added assets in just one month this year. Their net inflows since their inception stands at $11.37 billion, with the iShares Ethereum Trust (NASDAQ:ETHA) having the biggest market share with $5.7 billion in assets. 

The ongoing Ethereum ETF outflows is a sign that American investors expect that the price to remain under pressure for a while. It could also be because these investors are dumping their assets and rotating to other better-performing assets like stocks. 

Data shows that the top stock market-focused ETFs are adding substantial assets this year. For example, the Vanguard S&P 500 ETF (NYSE:VOO) has added over $64 billion this year and is approaching the $1 trillion mark. 

The recently-launched Roundhill Memory ETF (CBOE: DRAM) and Tema Space Innovators (NYSE:NASA) have added substantial inflows amid the ongoing artificial intelligence boom. 

Ethereum ETF outflows have risen as the network experiences major weakness across industries. For example, data shows that the total value locked in its ecosystem has dropped to $42 billion from $95 billion last year. 

According to TokeTerminal, Ethereum has generated $91.8 million in fees this year, a figure that has dropped from month to month. In contrast, Tron (CRYPTO: TRX) and Solana (CRYPTO: SOL) have made $1.3 billion and $116 million.

Ethereum fees | Source: TokenTerminal

ETH Price Inverted Cup & Handle Points to More Downside

Technicals suggest that the ETH price has more downside to go. It is slowly forming an inverted cup & handle pattern and is slowly nearing its lower side. This pattern often leads to more downside over time.

The coin has crashed below the 50-day and 100-day Exponential Moving Averages. Also, the Relative Strength Index (RSI) has continued falling, moving from the year-to-date high of 66 to the current 31.

Therefore, the path of the least resistance is lower, with the next key target being the cup's lower side at $1,763. A drop below that level will point to further downside, potentially to the psychological level of $1,500.

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