Ethereum, the top altcoin, finds itself in a challenging market landscape as it grapples with recent price declines. Yesterday, Ethereum hit a 23-day low of $3,432, and it is currently trading at $3,508.74, indicating a 1.47% decline. Despite the downturn, trading volume has surged by 12%, indicating increased market activity, although the coin has experienced a 7% drop over the past week.

The bearish trend coincides with the anticipated launch of Ethereum spot exchange-traded funds (ETFs) in the United States. However, uncertainties surrounding the approval timeline for individual S-1 fund filings by regulators have hindered bullish momentum. Derivatives metrics show a significant decline in bullishness, reaching a three-week low due to regulatory ambiguity, impacting investor sentiment.

Further contributing to the bearish sentiment is the Ethereum [ETH] Taker Buy Sell Ratio, which has been decreasing since June 5 according to a seven-day simple moving average (SMA). This metric highlights the cautious stance among investors amid market uncertainties.

SpotOnChain reported significant activity from wallets associated with the Ethereum Foundation, with three wallets actively selling ETH in the past week. Two major wallets sold 200 ETH for 744,722 DAI at around $3,724. Since the beginning of 2024, these wallets have sold 2,166 ETH for 6.21 million DAI, often preceding price drops. Recently, wallet 0xdb3 deposited 15,255 ETH (worth $55.6 million) to the Kraken exchange at $3,648 per ETH, originating from an Ethereum Foundation wallet and an Ethereum ICO participant.

A closer look at Ethereum's daily chart reveals a bearish trend, with the 9-day Exponential Moving Average (EMA) positioned at $3,648. The daily Relative Strength Index (RSI) sits at 44, indicating Ethereum is nearing an oversold condition.

In the coming days, if bulls manage to sustain their momentum, Ethereum could aim for the $3,788 level, with $3,972 as a subsequent target. Conversely, a renewed bearish sentiment might push the price down to $3,430, potentially finding support around $3,305.

Despite the current challenges, Ethereum's future trajectory remains uncertain, with market participants closely monitoring key indicators for potential price movements. The launch of Ethereum ETFs and regulatory developments will likely continue to influence Ethereum's price action in the near term. Stay tuned for updates on Ethereum's market performance.