- Ethereum faces a bearish trend, witnessing a decline of 10% in 30 days.
- The daily RSI at 40 suggests ETH’s stance in the oversold territory.
In the current bearish climate within the crypto world, Ethereum, the second-largest cryptocurrency, has undeniably felt the impact. Over the past 30 days, ETH has experienced a significant 10% decline, and in the last 7 days, it continued to slide with a 5% decrease.
Despite a brief surge at the end of August, driven by anticipation surrounding ETF approval following GBTC’s victory over the SEC, which propelled the price from $1,639 to $1,742, within just two days, it dropped to $1,634. Since then it has struggled to surpass the $1,670 range. Currently, ETH is trading at $1,650, fluctuating between $1,623 and $1,657.
The recent news of the SEC’s decision to delay ETF approval until 2024 has weighed heavily on Ethereum’s prospects. Amidst that, a day ago, the prominent investment management firm Ark Invest filed for first spot US Ether ETF. And the community is highly speculating about whether or not the asset management giant BlackRock will spot Ether ETFs next.
Adding to it, K33 senior analyst Vetle Lunde and Vice President Anders Helseth stated an ETF approval could be a game-changer, attracting substantial capital inflows and increasing buying pressure for Bitcoin and Ethereum. Conversely, they suggest that a potential rejection of a spot ETF would have minimal consequences, with Bitcoin prices likely to maintain their current status quo.
On the other hand, on-chain data indicates interesting trends among Ethereum whales. The cumulative count of this particular group of whale investors increased from 1,075 to 1,088 between September 3rd and 4th, with a collective purchase of approximately 260,000 ETH worth nearly $425 million during that period.
However, there has been a recent decline in the count of much larger ETH whales. Data from crypto analytics platform Santiment reveals a 2% drop in the count of ETH whales holding between 100,000 to 1,000,000 coins in the past three days.
How long until ETH Bulls Take Over?
An analysis of Ethereum’s recent price movements reveals a prevailing bearish trend on the daily chart. The 50-day exponential moving average (EMA) currently sits at $1,734, indicating the ongoing bearish sentiment. The daily relative strength index (RSI) stands at 41, suggesting that the asset is approaching oversold territory. Meanwhile, the trading volume of ETH is down 5% in last 24H, reaching $5 billion.
ETH/USD Daily Price Chart — MA, RSI (Source: TradingView)
This suggests that the bears are capitalizing on rallies near $1,650, and this narrow-range trading may not persist for long. If the price continues to decline below $1,600, it could signify the bears taking control, with minor support at $1,550, and a potential further drop to $1,368.
On the upside, the bears are expected to fiercely defend the zone between $1,650. If buyers manage to overcome this barrier, there is potential for the pair to surge toward the 50-day SMA at $1,772.
Will ETH Break its Bearish Pressure? Share your thoughts by tweeting us at @The_NewsCrypto
