Ethereum, the top altcoin in the market, faced a challenging day as its price dropped to a 23-day low of $3,432. Currently trading at $3,508.74, the coin has experienced a 1.47% decline. Despite this, trading volume has increased by 12%, indicating a surge in market activity even though Ethereum has seen a 7% decrease over the past week.
This downward trend coincides with the upcoming launch of Ethereum spot exchange-traded funds (ETFs) in the United States. However, uncertainties surrounding the approval timeline for individual S-1 fund filings by regulators have hindered bullish momentum. This regulatory ambiguity has led to a decrease in investor confidence, as evidenced by a significant drop in bullishness shown by derivatives metrics hitting a three-week low.
Further exacerbating the negative sentiment, the Ethereum [ETH] Taker Buy Sell Ratio, calculated using a seven-day simple moving average (SMA), has been on a downward trend since June 5. This metric highlights the cautious sentiment prevailing among investors.
In addition, there has been notable activity from wallets associated with the Ethereum Foundation. Over the past week, three such wallets have been actively selling ETH. Two main wallets of the foundation sold 200 ETH for 744,722 DAI at around $3,724. Since the beginning of 2024, these wallets have unloaded 2,166 ETH for 6.21 million DAI, often preceding price drops. Recently, wallet 0xdb3 deposited 15,255 ETH (worth $55.6 million) to the Kraken exchange at $3,648 per ETH. This ETH originated from an Ethereum Foundation wallet and an Ethereum ICO participant.
Analyzing Ethereum’s daily chart reveals a bearish trend, with the 9-day Exponential Moving Average (EMA) at $3,648. Additionally, the daily Relative Strength Index (RSI) stands at 44, indicating that ETH is nearing an oversold condition.
Looking ahead, if bulls can maintain momentum, Ethereum could target the $3,788 mark, with $3,972 as a subsequent goal. On the other hand, a renewed bearish wave could see the price drop to $3,430, potentially finding support at $3,305.
