Will Ethereum Rebound From Its 23-Day Low Or Will It Continue To Slide?

Ethereum (ETH), one of the biggest cryptocurrencies, is navigating a challenging market environment. After hitting a 23-day low of $3,432 yesterday, it is now trading at $3,537.32, marking a slight increase of 0.22% in the last 24 hours. 

This bearish trend coincides with the anticipated launch of spot Ethereum ETFs in the United States. However, some market analysts attribute the lack of bullish momentum to uncertainties surrounding the timeline for individual S-1 fund filing approvals by regulators. This regulatory ambiguity has reduced investor sentiment, as evidenced by a significant decline in bullishness according to derivatives metrics, which have plummeted to a three-week low. 

Adding to the bearish sentiment, the Ethereum (ETH) Taker Buy Sell Ratio, calculated using a seven-day simple moving average (SMA), has been trending downward since June 5th. This metric further underscores the prevailing cautious sentiment among investors. 

Meanwhile, the supply of Ethereum on crypto exchanges has experienced a notable decline, reaching its lowest level in seven years.

Despite the coin being down 7% over the past week, trading volume has surged by 12% reflecting heightened market activity. 

Analyzing Ethereum’s daily chart offers a more intricate view. Ethereum is firmly established in a bearish trend, with the 9-day Exponential Moving Average (EMA) resting at $3,648. Furthermore, the daily Relative Strength Index (RSI) sits at 44, indicating that ETH is nearing an oversold condition.

Looking ahead, should bulls sustain their momentum, Ethereum (ETH) could aim for the $3,788 level, with $3,972 as a subsequent target. Conversely, a renewed bearish wave may push the price down to $3,430, potentially finding support at $3.305.