😎 Summer Sale Exclusive - Up to 50% off AI-powered stock picks by InvestingProCLAIM SALE

Will Ethereum Recover from Its 23D Low or Continue to Decline?

Published 2024-06-12, 02:50 a/m
Will Ethereum Recover from Its 23D Low or Continue to Decline?
ETH/USD
-
COIN
-

The News Crypto -

  • 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.

This content was originally published on The News Crypto

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.