Ethereum Hits One-Month Low: What’s the Future for ETH?

• Ethereum’s price recently dropped to $1,551, a seven-month low.
• Ethereum co-founder, Vitalik Buterin, sold off a substantial amount of Ethereum.
• Ethereum futures-based ETFs on CME and CBOE underperformed expectations.

Ethereum , the cryptocurrency with the second-highest market cap, recently suffered a substantial decline, reaching $1,551, close to a seven-month low. This decrease follows a difficult week where it dropped more than 8%. The Ethereum community is grappling with this unexpected downturn, particularly given that ETH started October by surpassing the resistance level of $1,700, only to now face significant bearish pressure.

Santiment, a leading cryptocurrency data aggregator, has noted that Ethereum’s price performance has made it a contentious subject, with its social dominance reaching a peak not seen in seven months. Traders are becoming progressively restless as Ethereum’s fees hit their lowest levels in 2023. However, despite this, there has been a 119% increase in trading volume over the last 24 hours, amounting to $7 billion. Some market participants interpret the growing bearish sentiment as a potential indicator of an upcoming market reversal.

The price decrease can be attributed to several factors. A notable event was the substantial sell-off of Ethereum by its co-founder, Vitalik Buterin. In addition, the Ethereum Foundation (0x9e…313d) carried out a transaction selling 1.7k ETH on Uniswap at 16:18 (UTC+8), which amounted to 2.738 million USDC. The remaining assets in the address are 240.68 ETH, 3.238 million USDC, 49,700 DAI, and 10,000 ARB, totaling $3.687 million.

The introduction of Ethereum futures-based exchange-traded funds (ETFs) on the Chicago Mercantile Exchange (CME) and the Chicago Board Options Exchange (CBOE) on October 2 did not meet expectations. The combined assets under management during the initial trading week amounted to less than $10 million.

Arkham Analytics data indicates that a wallet linked to Vitalik Buterin has transferred 3,999 ETH to various exchanges over the past five weeks. This equates to an estimated $6.4 million. This significant transaction has sparked discussions within the crypto community about its possible reasons, considering the transfer size.

Will Ethereum Bulls Gain Control?

Upon examining Ethereum’s recent price fluctuations, it’s evident that bearish trends are at play. The 9-day exponential moving average (EMA) is now higher than the current trading price, at $1,656. Concurrently, the daily relative strength index (RSI) is 41, suggesting that the asset is approaching the oversold zone.

Ethereum has dipped below the critical support level of $1,600, which has led traders to keep a close eye on the subsequent important support levels at $1,548 and $1,526. Conversely, if Ethereum successfully surpasses the resistance at $1,650, it could pave the way for a retest of the $1,735 level.