Key factors driving Ether's price lower today include rising bond yields due to weaker demand for short-term Treasury notes and a recent decline in ETH holdings by large investors.

Ethereum's native token, Ether (ETH), is experiencing a decline today, dropping by over 1.66% to reach $3,700 on May 30. This downward movement is part of a broader cryptocurrency market correction, with net capitalization dipping by up to 2.50% on the same day.

One significant factor contributing to Ether's price decline is the rise in bond yields, driven by weaker demand for short-term U.S. Treasury notes. This week, the U.S. Treasury auctioned $183 billion in 2-, 5-, and 7-year notes, encountering tepid demand. The resulting increase in yields has coincided with declines in the Ether market.

Higher Treasury yields typically attract investors seeking stable returns, diverting funds away from riskier assets like cryptocurrencies. Additionally, growing expectations that the Federal Reserve may only reduce interest rates once this year have compounded the pressure on the crypto market.

Another key factor is the reduction in ETH holdings by large investors, or "whales." Recent data shows that entities holding between 1 million and 10 million ETH have decreased their holdings by 1% in the past 24 hours. This redistribution suggests that whales are selling off their holdings, leading to a decrease in the ETH price.

Ether's price decline is part of a correction that began on May 29, when its four-hour relative strength index (RSI) approached the overbought territory above 70. An overbought RSI often precedes a consolidation or correction phase. Moreover, a bearish divergence between Ether's price and RSI, with the price forming higher highs and the RSI forming lower highs, indicates a waning buying sentiment.

ETH has formed a double top pattern, characterized by two consecutive peaks with a minor correction between them. This pattern is typically seen as a bearish reversal indicator. It becomes confirmed when the price breaks below the neckline support, which in this case is at $3,684. A break below this level could lead to a further decline toward $3,400 in June, aligning with the 200-4H exponential moving average (200-4H EMA).

Conversely, if ETH experiences a decisive bounce from the neckline support accompanied by increased trading volumes, it could invalidate the double top pattern. In this scenario, ETH's price might aim for its early May resistance around $3,850 as the next upside target.

The current market dynamics highlight the sensitivity of cryptocurrency prices to broader economic indicators and investor behavior. As bond yields rise and major holders adjust their positions, the crypto market, including Ethereum, faces increased volatility and pressure. This underscores the importance for investors to remain vigilant and informed about both macroeconomic trends and market-specific technical indicators.