Ethereum’s Ascent Stifled at $2,996, Progressing Towards Critical Support Level

Ethereum (ETH) encountered a setback when it was unable to surpass the $2,996 mark. Currently, the cryptocurrency is heading towards a crucial support level at $2,880.
As of now, ETH is being traded at $2,902, experiencing a 2.48% decrease in the past 24 hours and a 5.64% drop over the week. The downward trend that started on April 13 has not yet been reversed.
Despite efforts from buyers to push the price higher, Ethereum has struggled to maintain its position above key moving averages.
Analyzing the 1-hour ETH/USDT chart, it is evident that a prolonged down-channel has formed within the same range. The price is trading below the 50-day and 200-day simple moving averages (SMA), signaling an unfavorable trend for bulls.
Furthermore, the Relative Strength Index (RSI) remains unstable at 35, indicating a somewhat unsustainable trend.
Multiple factors have contributed to Ethereum’s recent downward trend, including the underwhelming Dencun upgrade and the delayed approval of the Ethereum ETF.
The Dencun upgrade, released in March 2024, aimed to enhance scalability, reduce fees, and improve the efficiency of the Ethereum network. However, it failed to meet the community’s expectations, leading to a bearish sentiment.
Another significant factor impacting Ethereum’s price is the prolonged wait for the approval of the Ethereum ETF. The recent crackdown by the Securities and Exchange Commission (SEC) suggests that the anticipated approval may be delayed until 2025, further dampening investor sentiment.
Despite the overall bearish trend, recent data from analyst “Data Nerd” on May 14 reveals that multiple whales have been withdrawing Ethereum from exchange wallets. In a 24-hour period, a total of 78,301 ETH were withdrawn, indicating a potential accumulation pattern. This behavior could potentially encourage retail buyers to enter the market, leading to a possible shift in sentiment.