Woofun AI reports that Ethereum is currently testing the $1,600 support level, with a potential downside target of $1,200 if breached. The asset has declined 7.4% this week, trading below both its 7-day and 30-day moving averages.

Fundamental pressures include Ethereum Foundation restructuring and potential funding gaps following developer incentive program expirations.

Additionally, continuous net outflows from ETH spot ETFs, weak institutional demand, multi-year lows in on-chain asset volumes, and rising transaction failure rates are exerting downward pressure on the price.