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Ethereum (ETH) Still Down 19%, How Strong Are the Bears?

Ethereum Down 19%

  • Ethereum (ETH) resumes the downtrend, struggling to surpass $3K.
  • ETH investors’ sentiment slips into the neutral zone, as per its Fear and Greed Index.

The downtrends of the majority of altcoins in the market still resume. Ethereum (ETH), the largest altcoin by market cap, resumes to be under the bearish locks over the past 30 days with a 19% decline in price. 

ETH left the $3,500 zone behind on April 12, signaling the start of a notable decline. It eventually hit its 2-month low — $2,815 — on May 1, striking a bearish hammer on the charts. 

After a short drop of 0.14% in the last 24 hours, the price of ETH was $2,979.53 at press time. The alt’s daily trading volume dipped by 4.97% to $11.21 billion while its market cap stood at $357 billion. Notably, SmartMoney tracker lookonchain spotted a whale withdrawing nearly 6,030 ETH, worth $18.03 million at current prices, from crypto exchange Binance in the last 12 hours. However, investors’ sentiment around ETH has dropped from greed to neutral, indicated by the fear & greed index at 47. 

ETH/USDT 24H Price Chart (Source: TradingView)

The daily price chart indicated a bearish trend as the 50-day simple moving average (50 SMA) exceeds ETH’s price. Simultaneously, the RSI (relative strength index) hovered in the neutral territory at 41. Since the beginning of May, the daily volume also observed notable declines compared to the last week of April. If the possibility of trend reversal gets stronger, ETH might surpass a key resistance of $3,125. Conversely, if the opposite occurs, the price might tank to $2928.

Besides the token price, certain other aspects of the network require attention. According to the data, the amount of ETH issued still exceeds the count of burned ETH. A total of over 7.18 million ETH were issued, while 4.28 million ETH were burned ever since burning ETH was enabled in August 2021 — 1007 days ago. Seemingly, this indicates that users’ engagement in transacting with the network has reduced in pace. On the other hand, during the same period, the average gas fees on the network were recorded at 40.9 gwei.

Recently, Ethereum co-founder Vitalik Buterin drew the community’s attention by releasing an overview of EIP-7702, an account abstraction-centric proposal aimed at boosting the network’s sustainability. From users’ perspectives, these proposals and upgrades warrant close monitoring. However, most attention is centered around the approval of spot Ethereum ETFs in the US.

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Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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