Ethereum
Ethereum struggles to gain crucial support, what are bears targeting?
- Ethereum is collapsing breaking support zones and still relying on the main uptrend support of $2,880.
- The overall trend is bearish again after increased selling pressure.
- A reversal can be seen if buyers hold the price above the MA lines ($2900)
The biggest altcoin Ethereum(ETH) was rejected at $2,996 and is now heading towards the main uptrend support level at $2,880. Currently trading at $2,902 with a 24-hour decline of 2.48% and a weekly decline of 5.64%. The downward trend that began after April 13 has never been reversed until now.
On the positive side, buyers failed to keep the price above the moving averages.
The ETH/USDT 1-hour chart says it all, forming a long-standing descending channel in the same range with price below the 50-day and 200 SMA is not a favorable uptrend. The RSI being more unstable at 35 indicates a slightly unsustainable trend.
Dencun and the one-time approval of the ETF on the table of reasons
Ethereum’s downward trend can be seen as the impact of unmet demands from the Dencun upgrade released in March 204. The upgrade was a layer 2 blockchain upgrade aimed at reducing the time and costs and to increase the scalability of the network.
The other major impact is the unapproved and long-awaited approval of the Ethereum ETF. The recent crackdown on the SEC indicates a prolonged wait for approvals into 2025.
Interestingly, today, May 14, data revealed by analyst “Data Nerd” shows multiple whale removals. In 24 hours, a total of 78,301 ETH was withdrawn from the exchange wallet. This can also be seen as a sign of hoarding, leading retail buyers to charge more.