Why is the Largest Altcoin Ethereum (ETH) Losing Ground?

• Ethereum underperforms, its price has declined 2% in the past 24h.
• Whale selling intensifies ETH faces market pressure.

Ethereum (ETH), the largest altcoin by market cap, continues to underperform in the crypto market. The cryptocurrency has been in a steady downtrend since falling below $3,400 on June 23. The much-anticipated “Uptober” has also disappointed ETH holders, with the altcoin hitting a monthly low and facing growing selling pressure.

Currently, Ethereum is trading at $2,405.50, marking a 2% decline in the past 24 hours. Despite a slight 1.2% increase in trading volume, the coin’s performance lags behind Bitcoin (BTC). Over the past year, Bitcoin has surged more than 120%, while Ethereum has gained only about 50%.

Meanwhile, ETH’s market dominance has also been dwindling, currently standing at 13.85%, a steep drop from its yearly high of nearly 20%. Several factors are contributing to this decline, including Bitcoin’s rising dominance, which has been bolstered by increased institutional interest in spot Bitcoin ETFs. 

Adding to Ethereum’s woes is a significant increase in whale-selling activity. SpotOnChain data shows a whale that participated in Ethereum’s 2014 Initial Coin Offering (ICO) deposited 50,000 ETH, worth around $125 million, to exchanges in recent weeks. Simultaneously, the Ethereum Foundation has offloaded over $10 million in ETH this year.

Moreover, with declining demand for ETH ETFs and a rising circulating supply, Ethereum is facing mounting sell-side pressure. If demand doesn’t pick up, Ethereum may continue its downward trajectory, struggling to reach the $3,000 mark that investors hoped for this month. 

What Can Traders Expect From ETH?

Despite the ETF outflows, Ethereum technical indicators suggest that it is in bearish momentum. It’s 9-day EMA is at $2429. The daily RSI stands at 47, showing that it is nearing an oversold condition.

If demand holds, ETH could break resistance at $2651 and push toward $2819. However, slowing accumulation could lead to a drop in price to the support level of $2296.

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