The Ethereum market is experiencing a significant downturn, with the price dropping by 3.5% to $3,550 levels. This decline is accompanied by a surge in trading volume, reaching $14.8 billion, a 84% increase from the previous day.

Futures Traders Sell Aggressively

The Ethereum futures market is showing a bearish trend, with traders selling aggressively. The Taker Buy Sell Ratio, which measures the relative aggressiveness of buyers versus sellers, has been declining sharply in recent days. This indicates that most futures traders are selling Ethereum, either for speculative purposes or to realize profits.

Network Realized Profit/Loss (NPL) Data

The NPL data from Santiment suggests that Ethereum holders are selling at significant profits, indicating the formation of local tops. This trend is further supported by the sharp spike in the NPL indicator from 36.69 million to 1.06 billion in a single day.

Uncertainty Surrounding Spot Ether ETF Approval

The uncertainty surrounding the approval of the spot Ether ETF is adding to the bearish sentiment. Despite record investment inflows last week, investors are unsure whether this trend will continue. Even if the SEC approves the S-1 filings, investors worry that the current market conditions are not conducive to demand for Ethereum ETFs.

Support Levels

The Ethereum price has a notable support zone, comprising the 100-day moving average at $3,430 and the 0.5 Fibonacci retracement level at $3,419. It will be interesting to see whether the Ethereum whale accumulation continues or not going ahead. Additionally, macroeconomic concerns are showing further signs of stress, which could impact the Ethereum market further.