Ethereum ETFs Launched — Why is ETH's Price Dropping?
What’s happening with Ethereum? — A Technical Analysis
Before discussing about the major factors that triggered the bearish downturn, it is important to analyse the technical aspects and price action of Ethereum.
After reaching a 2024 all-time high (ATH) of $4093.92, ETH experienced a bearish divergence. This was followed by the formation of a falling wedge pattern, which broke out following news of a potential ETH ETF approval.
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View Details» Despite attempting to retest the aforementioned ATH, ETH fell, forming a parallel regression channel. It briefly broke below the 200-day EMA support level, raising concerns. However, ETH quickly recovered and is currently retesting the 200-day EMA support, showing signs of a bounce back. If this support level fails, ETH may revisit its major demand zone between $2844 and $2923.
Traditional indicators show mixed signals. The MACD is turning bearish, while the RSI remains neutral. The near-term trend will likely depend on market sentiment related to the potential ETH ETF inflow/outflow. If ETH holds the support levels, a bullish divergence could be on the horizon
Now let us examine the major events that triggered the correction of Ethereum:
Sell-the-News Event The approval and launch of the ETFs may have
