Ethereum’s price is facing downward pressure as it has dropped 3.3% from above $3,040 to around $2,930. This decline is accompanied by high daily trading volumes of $13.5 billion. The recent death cross in the ETH/BTC pair has pushed the Ethereum price to new three-year lows. Analysts have provided reasons for ETH’s underperformance, including the approval of spot bitcoin ETFs in the US, which has strengthened bitcoin’s position as a store of value. On the other hand, there are still uncertainties surrounding ETH’s fundamental positioning in the crypto sector. The SEC is expected to reject applications for spot Ethereum ETFs, as they consider whether Ethereum might be classified as a security. Competing layer-1s like Solana are also detracting from Ethereum’s position as the preferred network for dApp deployment. Ethereum’s Dencun upgrade earlier this year has significantly reduced the crypto’s burn rate, which could be seen as a positive for long-term adoption but has been viewed bearishly by some. Citron Research founder Andrew Left has expressed bearish sentiments towards Ether, shorting it due to concerns about its security classification. The ETH/BTC pair is trading within a multi-year downtrend, and whales may be hesitant to accumulate ETH when Bitcoin appears to be stronger and more widely accepted. The recent drop in the Ethereum price suggests that bears are in control in the short term, with strong resistance at major short-term moving averages. The price is locked in a medium-term downward trend channel, and a descending triangle structure is forming, indicating a potential bearish breakout. Traders should also monitor the uptrend in play since October. The Ethereum price is expected to drop below the recent low, with the first downside target being the early 2024 highs near $2,700. The next major support zone is around $2,150, where whales may re-enter the market to accumulate. Despite the bleak prospects relative to BTC, Ethereum is still in the midst of a crypto bull market. Considering alternative options, investors may want to explore meme coins, such as Dogecoin and Shiba Inu, for better upside potential. For those seeking even higher gains, newer meme coins like Wiener AI (WAI) are worth considering. Wiener AI is a sausage dog-themed coin that offers AI-powered trading tools and has already attracted significant investment in its presale. However, it’s important to note that investing in crypto carries high risk, and this article is for informational purposes only and should not be considered investment advice.
