Ethereum's Recent Price Decline Explained

Ethereum has recently faced significant price pressure, dropping nearly 20% within just four days. This decline has pushed ETH below the critical $3,500 support level, with futures traders turning bearish and triggering substantial liquidations.

Notably, the Ethereum Foundation has also contributed to the downward trend by selling 100 ETH. The market is experiencing a sell-the-news effect following the launch of Ethereum ETFs, resulting in considerable outflows from major trusts.

Broader market dynamics, including a cautious stance from the Federal Reserve and falling tech stocks, have exacerbated the situation. As Ethereum's price approaches a potential support level at $2,850, analysts suggest that a bounce may occur as it enters the oversold territory.

However, the prevailing bearish sentiment and technical patterns indicate that Ethereum may continue to face challenges in the near term.