- Ethereum’s price hit a 23-day low of $3432 yesterday.
- Bullish momentum wanes as Ethereum grapples with oversold conditions.
Ethereum, the leading altcoin, is currently navigating a challenging market environment. After hitting a 23-day low of $3,432 yesterday, it is trading at $3,508.74, marking a 1.47% decline. While, trading volume has surged by 12%, reflecting heightened market activity despite the coin being down 7% over the past week.
This bearish trend comes amid the anticipated launch of Ethereum spot exchange-traded funds (ETFs) in the United States. However, some market analysts attribute the lack of bullish momentum to uncertainties surrounding the timeline for individual S-1 fund filing approvals by regulators. This regulatory ambiguity has dampened investor sentiment, as evidenced by a significant decline in bullishness according to derivatives metrics, which have plunged to a three-week low.
Adding to the bearish sentiment, the Ethereum [ETH] Taker Buy Sell Ratio, calculated using a seven-day simple moving average (SMA), has been downward since June 5. This metric further underscores the prevailing cautious sentiment among investors.
Compounding the situation, SpotOnChain reported notable activity from wallets associated with the Ethereum Foundation. In the past week, three such wallets have actively unloaded ETH. Two of the foundation’s main wallets sold 200 ETH for 744,722 DAI at approximately $3,724.
Since the beginning of 2024, these wallets have offloaded 2,166 ETH for 6.21 million DAI, often ahead of price drops. Notably, three days ago, wallet 0xdb3 deposited 15,255 ETH (worth $55.6 million) to the Kraken exchange at $3,648 per ETH. This wallet’s ETH originated from an Ethereum Foundation wallet and an Ethereum ICO participant.
ETH To Dip Deeper?
Examining Ethereum’s daily chart provides a more detailed perspective. The digital asset is entrenched in a bearish trend, with the 9-day Exponential Moving Average (EMA) positioned at $3,648. Additionally, the daily Relative Strength Index (RSI) is at 44, indicating that ETH is approaching an oversold condition.
Looking ahead, if bulls can maintain their momentum, Ethereum might target the $3,788 mark, with $3,972 as a subsequent goal. Conversely, a renewed bearish wave could see the price descending to $3,430, potentially finding support at $3,305.