Ethereum Faces Bearish Trend as Profit-Taking and Futures Selling Increase

• Ethereum’s Network Realized Profit/Loss (NPL) data suggests notable profit-taking activities indicating a bearish market sentiment.
• Investors are currently cautious due to unpredictable SEC decisions regarding spot Ether ETFs.
• Ethereum has recently experienced significant selling pressure, with marked trading volume increases.

Ethereum’s market faces considerable volatility due to aggressive selling and regulatory uncertainties. Explore the factors contributing to the current bearish sentiment.

Futures Traders Show Aggressive Selling Behavior

The latest data from CryptoQuant reveals that Ethereum futures traders have been predominantly selling. The 7-day moving average of the Taker Buy/Sell Ratio shows a consistent trend below one, highlighting seller dominance. This metric’s decline is a bearish signal that hints at continued downward pressure on Ethereum’s price.

Network Realized Profit/Loss Indicator

Santiment’s NPL data indicates substantial profit-taking among Ethereum holders. From June 10 to June 11, the indicator surged from 36.69 million to 1.06 billion, signaling that recent sell-offs have been at high-profit margins. Such behavior often points to the establishment of local price peaks and could lead to further price corrections if the selling trend persists.

Impact of SEC’s Uncertain Approval Timeline for Ether ETFs

The absence of definitive guidance from the SEC regarding the approval timeline for spot Ether ETFs continues to weigh heavily on investor sentiment. Although major Ethereum investments peaked last week, the lack of clarity around these regulatory decisions tempers bullish enthusiasm. Even if the SEC greenlights filings from prominent firms like BlackRock or Fidelity, investors remain skeptical about immediate demand under current market circumstances.

Price Support and Market Outlook

Despite these bearish indicators, Ethereum’s price has some support zones around the 100-day moving average at $3,430 and the 0.5 Fibonacci retracement level at $3,419. Whether Ethereum whales continue to accumulate or macroeconomic stresses intensify will play critical roles in shaping Ethereum’s near-term trajectory. Observing these dynamics will be crucial for market participants.

Conclusion

The current market scenario for Ethereum reveals a strong bearish sentiment driven by aggressive futures selling, substantial profit-taking as per NPL data, and uncertainty regarding the SEC’s decisions on Ether ETFs. Investors should carefully monitor these factors, along with key support levels, to make informed decisions. The upcoming weeks will be pivotal in determining whether Ethereum can reverse its downward trend or if the bearish momentum will prevail.