Amidst Ethereum ETFs updates, ETH bears take control

• Ethereum’s value has dropped 10% in the last month amid a cryptocurrency market downtrend.
• The SEC’s postponement of ETF approval until 2024 has impacted Ethereum’s potential.
• Ethereum’s trading volume has decreased by 5% in the last 24 hours.

In the prevailing downtrend in the cryptocurrency market, Ethereum , which ranks second in market capitalization, has certainly been affected. In the last month, ETH has seen a substantial 10% drop in its value, and this downward trend persisted over the past week with a further 5% reduction.

Following a short-lived increase in late August, fueled by expectations of ETF approval after GBTC’s triumph against the SEC, the price escalated from $1,639 to $1,742 in two days, only to fall back to $1,634. Since that time, it has had difficulty exceeding the $1,670 mark. ETH is currently being traded at $1,650, with its value oscillating between $1,623 and $1,657.

The recent announcement that the SEC has postponed the approval of ETFs until 2024 has significantly impacted Ethereum’s potential. Amid this, Ark Invest, a leading investment management company, applied for the first US Ether ETF a day ago. There is also considerable speculation within the community about whether BlackRock, a major asset management firm, will be the next to target Ether ETFs.

Furthermore, K33’s senior analyst Vetle Lunde and Vice President Anders Helseth have expressed that the approval of an ETF could significantly alter the landscape by drawing considerable capital inflows and amplifying the demand for Bitcoin and Ethereum. On the other hand, they propose that denying a spot ETF might not have significant repercussions, as Bitcoin prices are expected to uphold their existing state.

Conversely, on-chain data reveals intriguing patterns among Ethereum whales. These specific whale investors rose from 1,075 to 1,088 from September 3rd to 4th, collectively buying around 260,000 ETH valued at close to $425 million during this timeframe.

Nonetheless, recent data indicates a decrease in substantial ETH whales. According to information from the cryptocurrency analytics platform Santiment, there has been a 2% reduction in ETH whales possessing between 100,000 and 1,000,000 coins in the last three days.

When will the ETH bulls regain control?

A review of the recent price fluctuations of Ethereum shows a dominant downward trend in the daily chart. The 50-day exponential moving average (EMA) is presently at $1,734, signaling a continuous bearish outlook. The daily relative strength index (RSI) is 41, indicating that the asset is nearing an oversold condition. Concurrently, Ethereum’s trading volume has decreased by 5% in the last 24 hours, amounting to $5 billion.

This implies that the bears are taking advantage of rallies close to $1,650, and this limited-range trading might not last. Should the price keep falling below $1,600, it may indicate the bears are gaining dominance, with slight support at $1,550 and a possible additional decrease to $1,368.

Positively, it is anticipated that the bears will strongly protect the area around $1,650. Should purchasers break through this resistance, the pair could rally towards the 50-day SMA valued at $1,772.