EthereumEthereum's Ascent Stifled at $2,996, Progressing Towards Critical Support Level

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

Date:

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 In a 24-hour period, a total of 78,301 ETH were withdrawn, indicating a potential accumulation pattern.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.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Share post:

Subscribe

spot_imgspot_img

Hot News

Related
Related

Ethereum Reaching $10,000 by 2025 Is Almost Certain, with One ETH-Based Altcoin Expected to Surge by 9,450%

Whether Ethereum will reach $10k in the future depends on the platform’s capacity for network deve...

The Altcoin with the Highest Trading Volume on Binance

XRP is the most traded altcoin on Binance this December with over $116.6 million in trading volume....

AdEx Introduces Onchain Activity Analyzer Enhanced with Artificial Intelligence

The leading blockchain-based ad-tech platform, AdEx, has introduced AdEx AURA, a cutting-edge artifi...

Factors that Could Propel FXGuys to Reach $1

FXGuys ($FXG) has become one of the most talked-about tokens in the crypto space, with analysts pred...