Ether (ETH) was trading at $3,513 on June 20 at 10:20 am EST after posting a slight 0.4% decline.
The price of Ethereum has struggled despite positive news surrounding the Ethereum ecosystem.
Ethereum Price Analysis
The struggle in ETH’s price movement comes as the token continues to witness a decline in trading volumes. Data from CoinMarketCap shows that ETH trading volumes have dropped by 13% in the last 24 hours, showing a lack of market interest.
The Ethereum price chart also shows buyers are not incentivized to enter the market. With the Relative Strength Index (RSI) at 29, ERH is leaning toward the oversold levels.
This indicator shows buyers are not motivated to accumulate, and a bearish thesis is currently in play.
However, a look at the RSI line movement indicates a slight change in momentum. However, given that the price change has not been significant, the movements in the RSI line could be attributed to traders taking arbitrage positions.
The bullish thesis is further confirmed by the Moving Average Convergence Divergence (MACD) line below the signal line.
The MACD line is also below zero, which confirms the downward momentum. With the MACD histogram bars turning negative, selling pressure in the market is significantly high, showing the potential for the downtrend to continue.
If ETH continues to fall, the next most likely price is $3,450. With a lack of interest across the broader cryptocurrency market, ETH could continue trading rangebound and fail to make significant price changes.
Altcoins have Bottomed
Earlier, Santiment noted that the Fear Of Missing Out (FOMO) around altcoins has died down considerably, which could make the case for a price gain to come.
Crypto market analyst Michael van de Poppe notes that while the altcoin hype has died down, these coins show more potential to increase and rally higher.
If ETH has bottomed, the altcoin could be headed to a significant uptrend, potentially breaking the $3,800 barrier.
ETH Exchange Reserves Drop Amid Positive News
Ether exchange reserves have dropped considerably, according to CryptoQuant data. The data shows that a record $3 billion worth of Ether has been withdrawn from centralized exchanges since May 2024.
The CryptoQuant data shows that since the US Securities and Exchange Commission (SEC) approved spot Ether ETFs, the amount of ETH held in exchanges dropped by around 797,000 between May 23 and June 2.
The decline comes amid growing optimism that spot Ether ETFs will attract as much interest as spot Bitcoin ETFs, which debuted earlier this year.
The SEC Chair, Gary Gensler, said that the spot ETH ETFs could get final approval this summer. With analysts anticipating the approval on July 2, ETH will likely continue to post a significant price gain in the days leading to the launch.
Besides the ETH ETF launch, the Ethereum ecosystem had another reason to celebrate. The SEC dropped charges against leading Ethereum developer ConsenSys.
The SEC’s lawsuit around ConsenSys revolved around allegations that ETH could be a commodity, not a security.
After the charges were dropped, ETH posted a slight price increase past $3,500. However, these gains have since vaporized, with the largest altcoin returning to previous levels.
The price of Ether could see a similar price action as Bitcoin following the launch of spot ETH ETFs. The ETF issuers accumulate Bitcoin for these products, and while analysts believe that demand will be low, the price gain will be evident.
