Ethereum Bears Are Gaining Momentum: Here’s Why?

• Ethereum co-founder Vitalik faces character assassination claims.
• ETH approaches oversold territory on the daily chart.

In the past few weeks, Ethereum (ETH), the second largest market capital-holding cryptocurrency, has encountered a challenging environment marked by bearish pressure, setbacks, and negative sentiments from industry luminaries. These factors have contributed to ETH’s decline; while it briefly reached $1666 in September, it could not sustain these gains for even a week and is currently fluctuating in the $1,566 to $1,600 range.

Also, Santiment, an on-chain analytics platform, has reported that Ethereum network fees have hit their lowest levels in 2023. Each transaction now averages approximately $1.15, signifying a substantial reduction from the exorbitant fees witnessed in 2021 and 2022, where average fees soared above $50 due to high demand for processing power.

Moreover, a recent research report by prominent American multinational and universal bank JPMorgan (JPM)  outlined that Ethereum’s much-anticipated Shanghai upgrade, implemented in April, has not delivered the anticipated surge in activity on the world’s largest smart contract blockchain.

The bank noted that since the Shanghai upgrade, Ethereum’s daily transactions have fallen by 12%, daily active addresses have dropped nearly 20%. And the total value locked (TVL) in decentralized finance (DeFi) on the blockchain has slumped by almost 8%.

Adding to the uncertainty, accusations have surfaced against its co-founder, Vitalik Buterin, by former Ethereum advisor Steven Nerayoff. Nerayoff alleges that Vitalik Buterin and his father orchestrated a character assassination against him. He cites a video where Vitalik accuses him of ICO-related fraud. And sources reveal that his further allegations cast doubt on Ethereum’s founding principles.

Will The ETH Bears Get a Rest ?

A closer examination of Ethereum’s recent price movements underscores a prevailing bearish trend on the daily chart. Notably, the 9-day exponential moving average (EMA) has dipped above the trading price, currently at $1598. The daily relative strength index (RSI) stands at 37, indicating an almost oversold condition. Nevertheless, trading volume has surged by 101% in the past 24 hours, reaching $3 billion.

At the time of writing, ETH is trading at $1,576, reflecting a 1.05% decline in the past 24 hours, according to data from CMC. If the price manages to surpass the short-term resistance level at $1,600, it could potentially climb toward the $1,666 resistance level. Conversely, breaking below the $1,573 level could lead to a test of the critical support at $1,540.

How long do you think the bears will reign? Share your thoughts by tweeting us at @The_NewsCrypto