Ethereum (ETH) struggles to maintain momentum, falling below $3,500 after recent gains. The price decline comes even after the successful launch of Ethereum’s highly anticipated Dencun upgrades, designed to reduce costs for Layer 2 solutions.

Market Jitters and Liquidations Weigh on ETH

Similar to Bitcoin, Ethereum has been impacted by recent market-wide liquidations triggered by broader price corrections. While other altcoins like Solana show resilience, ETH continues its downward trend.

Dencun’s Potential to Boost Ethereum Price

Analysts remain optimistic about Ethereum’s long-term prospects due to the Dencun upgrades. Dencun’s Blobs feature aims to lower fees for Layer 2 solutions, potentially making Ethereum more attractive for Dapp and service development. This could solidify Ethereum’s position as a leading DeFi project and potentially push its price to $4,799 by year-end, according to some forecasts.

Spot Ethereum ETF Approval: A Glimmer of Hope?

Standard Chartered Bank remains bullish on Ethereum, predicting approval of spot Ethereum ETFs by May 23rd, 2024. This approval, if it happens, could trigger significant inflows into Ethereum, similar to the impact of Bitcoin ETFs. Such inflows could fuel a price surge, with some analysts projecting an ETH price of $8,000 by the end of 2024 and $14,000 by 2025.

Fidelity Seeks Staking Permission for Potential Ethereum ETF

Financial giant Fidelity is seeking regulatory approval to stake a portion of the Ether held in its proposed spot Ethereum ETF. Staking allows investors to earn additional income on their holdings. This move could further enhance the appeal of Ethereum ETFs and potentially attract more investors.

ETH/USD Technical Analysis

Ethereum price has broken below key support levels of $3,720 and $3,550, indicating a short-term bearish trend.

• Immediate resistance lies at $3,440, followed by a major hurdle at $3,520.
• A break above $3,650 could signal a potential upswing towards $3,825 and even $4,000.

Conversely, failing to overcome $3,520 resistance could lead to further declines towards $3,320 and even $3,150.