Where Ethereum (ETH) – the queen of the market – touched the sky at $4,000 during the bull run of 2021 has now lost more than half of its value. The cryptocurrency is struggling to maintain its price above $2,000. At the time of writing, Ethereum stands at a price level of $1,942. The price has declined by 4% in the past twenty-four hours while the trading volume has also been dropping.

The market outlook for the queen of cryptocurrency is bearish. Out of the total twenty-six technical indicators, fifteen indicators are standing at a position of sell with nine indicators giving out a neutral signal and two signals bullish at buy. The oscillators are neutral while the moving averages are strongly bearish.

Major developments to watch out for

Although Ethereum is suffering from increased bearish momentum, it still rules the market as its queen. The bearish momentum may have deterred some investors but definitely not all. The very first Ethereum Exchange-Traded Fund of South America has been approved by Brazil’s Securities and Exchange Commission. The regulator had previously given the go-ahead to Bitcoin’s ETF and now an ETF that would track the price of Ethereum has also been given the green light.

The bearish scenario of Ethereum has only incentivized the whales to hold more of the cryptocurrency. Santiment’s data reveals that the top ten largest Ethereum wallet owners are now in hold of 20% of Ethereum’s offering. These top ten whales have bought nearly 2% of Ethereum’s supply during the market dip and the accumulation has been going on since 2017.

Coinbase Wallet has added support for the famous scaling solution of Ethereum – Polygon. With the help of Polygon, Ethereum can be transformed into a multi-chain network or “the internet of blockchain”. Hence, increasing support for Polygon translates into good things for Ethereum.