Ethereum’s price plummeted to a 23-day low of $3,432 yesterday, signaling a decrease in bullish momentum as the leading altcoin grapples with oversold conditions in the market. Currently trading at $3,508.74, Ethereum has experienced a 1.47% decline, with trading volume surging by 12% despite a 7% decrease over the past week.
This bearish trend coincides with the upcoming launch of Ethereum spot exchange-traded funds (ETFs) in the United States, contributing to uncertainties among investors due to delays in individual S-1 fund filing approvals by regulators. This regulatory ambiguity has led to a decline in bullishness, as indicated by a three-week low in derivatives metrics.
Furthermore, the Ethereum [ETH] Taker Buy Sell Ratio, calculated using a seven-day simple moving average, has been on a downward trend since June 5, reflecting cautious sentiment among investors. SpotOnChain also reported significant activity from wallets associated with the Ethereum Foundation, with three wallets actively selling ETH in the past week.
In a notable transaction, two of the foundation’s main wallets sold 200 ETH for 744,722 DAI at around $3,724. Since the beginning of 2024, these wallets have offloaded 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, originating 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 at $3,648 and the daily Relative Strength Index (RSI) at 44, indicating an approaching oversold condition. In the near future, Ethereum may target $3,788 and $3,972 if bullish momentum is sustained, while a renewed bearish wave could lead to a price decline to $3,430, potentially finding support at $3,305.
