Why Ethereum Is Shedding Weekend Gains Sparked by ETF Hopes

Ethereum reverses course after weekend excitement sent the asset’s price soaring.

Robot looking at something strange happening to ETH.
Created by Kornelija Poderskytė from DailyCoin
  • Ethereum’s price is not having a great start to the week despite excitement over the weekend.
  • The asset’s recent price dip may be linked to macroeconomic factors and whale activity.
  • A price bounce may be on the horizon, but there are several factors investors must watch.

Ethereum‘s price can not catch a break.


Over the weekend, the asset looked set to shake the doldrums of recent weeks as the Depository Trust and Clearing Corporation (DTCC) stirred hopes of spot Ethereum ETF approvals by listing Franklin Templeton’s planned offering on its website. Heading into the new week, however, this excitement appears to have fizzled out amid looming U.S. economic data and whale activity.

Ethereum Takes a Dive

Ethereum surged about 7% this weekend from lows of about $3,074 to highs of about $3,287. At the time of writing, however, about half of the weekend gains have been given away, as the asset trades around $3,152.

ETH/USD 4-hour candle chart.
ETH/USD 4-hour candle chart. Source: TradingView

The market jitters come as the U.S. Federal Reserve is set to decide on interest rate changes on May 1. With the CME FedWatch Tool predicting a 97.1% chance that rates will remain unchanged, risk asset investors are again forced to face the fact that anticipated rate cuts may not be coming anytime soon. 

In addition to the Fed rate decision, the employment rate data for April 2024 is also expected this week, specifically on May 3, which could influence future Fed interest rate decisions.

Market speculators keenly watch the Fed interest rate decision as it influences the ease of accessing capital for investment. With the U.S. experiencing higher-than-desired inflation over the past year, the Fed has moved to raise and keep interest rates higher to discourage excess capital flows. While this move may help to bring down inflation, it also hurts perceived risk assets like Ethereum, which tend to thrive when investors have capital to spare.


In addition to the market nerves brought on by this week’s U.S. economic data, recent movement by a long-dormant wallet linked to the Ethereum Foundation has also stirred sell-off concerns. 

On Sunday, April 28, crypto smart money tracker Lookonchain highlighted that the wallet had moved for the first time in nine years, sending out 2,000 ETH worth over $6.6 million. The address had not moved since it received the sum from the Ethereum Foundation in September 2015. At the time, the received sum was worth less than $200.

Can ETH Rebound?

Ethereum’s daily time frame chart suggests that the asset is rejecting off the top of a month-long descending channel chart pattern as part of what looks to be a bull market correction. At the same time, the asset trades near a weekly support range between $3,135 and $2,882. 

Ethereum daily candle chart. Source: TradingView

The combination of the chart pattern and the near-support level suggests a price bounce could be on the horizon. This bounce, of course, would depend on whether bulls can hold the support level. 

Possible catalysts for a bullish move include the recent drop in Ethereum fees. At the same time, holders would want to keep an eye on whether the SEC would eventually dash hopes of a spot ETF approval by May 2024.

On the Flipside 

  • While the days before economic releases are typically characterized by muted price action, the releases tend to cause significant market volatility. 
  • Ethereum is not the only crypto asset experiencing a market correction ahead of this week’s economic releases. At the time of writing, CoinMarketCap data suggests that assets like BTC, BNB, and SOL are also experiencing price declines of 2%, 2.5%, and 4.67%, respectively. 

Why This Matters

Ethereum is the second largest crypto asset in terms of market capitalization. Following the excitement over the weekend, investors must understand the reason for the recent dip to make informed market decisions.

Read these for more on Ethereum:
Justin Sun’s 891M Ethereum Buying Spree: A Sign Of Recovery?
Polygon (MATIC)-Linked Avail Integrated by Leading L2s for DA

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Okoya David

David Okoya is a crypto news reporter at DailyCoin based in Nigeria. He covers various topics related to the cryptocurrency industry, including exchanges, regulations, and price movements, and strives to bring fresh angles to breaking news. With experience as a freelance crypto news writer, David upholds the highest journalistic standards, telling complete stories and answering lingering questions whenever possible.