Ethereum (ETH) has faced rejection at $2,996 and is now heading towards a crucial uptrend support level at $2,880. The 1-hour ETH/USDT chart shows a prolonged down-channel formation, indicating a bearish trend. Despite attempts by buyers to push the price higher, Ethereum has struggled to maintain its position above key moving averages.

The recent downtrend can be attributed to the delayed approval of the Ethereum ETF by the SEC and the Dencun upgrade, which failed to meet community expectations. The Relative Strength Index (RSI) remains unstable at 35, suggesting an unsustainable trend.

However, whale activity suggests accumulation, with 78,301 ETH withdrawn from exchange wallets in 24 hours. This could potentially encourage retail buyers to enter the market, leading to a shift in sentiment.

Ethereum's price drop has sparked concerns about its inflationary risk and bearish trends. The Ethereum community is also debating the EIP-7702 proposal, which aims to address account abstraction challenges. Amidst these developments, Ethereum's price continues to fluctuate, with a 2.48% decrease over the past 24 hours and a 5.64% drop on a weekly basis.