Will Ethereum Overcome Its Bearish Sentiment?
- Ethereum’s 8th anniversary was overshadowed by a 20.70% drop in trading volume.
- Bearish sentiment challenges Ethereum as it aims to breach the $2,000 mark.
Ethereum, the second-largest cryptocurrency finds itself amidst a bear-dominated market. The ongoing battle between the bear and the bull has intensified over the past two weeks, driving down the price. Notably, the price of ETH has decreased by 6.16% in the last month and by 2.1% within the last 7 days. This downward trend has unnerved investors, resulting in a 20.70% drop in trading volume, which now stands at $5,576,261,147.
Ethereum, also touted as the Silver Cryptocurrency, recently celebrated its 8th anniversary with investors’ hopes of breaking free from its bearish grip. However, these hopes were dashed as the price remained between a low of $1,817 and a near-miss high of $1,885. Concurrently, the market capitalization has also suffered a decline of 2.10% according to CoinMarketCap, resting at $220,706,624,490.
Will Ethereum Bears Continue to Rule?
An analysis of the daily price chart indicates a dip below the short-term 50-day simple moving average (50 SMA), underscoring the bearish sentiment. The 50 SMA currently stands at $1,858. Despite this, recent price movements over the past two weeks suggest Ethereum’s persistent efforts to regain bullish momentum.
The daily Relative Strength Index (RSI) reveals that ETH has slipped below the neutral zone at 43, signaling a potential oversold condition. If this trend continues, the ETH/USDT pair could decline to $1,813, possibly further dropping to $1,700.
However, Bulls aiming to avert a short-term decline must overcome the obstacle by the 20-day Exponential Moving Average (EMA), potentially leading to an upward movement toward $2,000.
Currently, CoinMarketCap indicates Ethereum price at $1,837 with a decline of 1.33%.
A Bullish Hope?
Recently, Eric Balchunas, Bloomberg’s senior ETF analyst, and James Seyffart have meticulously summarized pending Ethereum (ETH) futures ETF requests under U.S. SEC review. Bitwise, Roundhill, VanEck, ProShares, and Grayscale submitted filings on August 1, 2023, with Volatility Shares on July 28.
Currently, SEC is processing six Ether Futures ETF packages which await approval. Decisions are anticipated by mid-October 2023. If approved, it could empower wealth managers to invest in traditional ETFs. It will potentially boost the sector and spark a bull run.
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Text source: TheNewsCrypto – Blockchain & Cryptocurrency News M
