Ether (ETH) has experienced an 11% decline in value over the past six days, dropping from $4,000 to $3,500. However, 89% of ETH holding addresses remain in profit, according to crypto market intelligence platform IntoTheBlock. The price slump began after the Dencun upgrade, which aimed to reduce transaction fees and improve network scalability. Despite the price drop, Ethereum network activity and supply dynamics remained positive.

The biggest potential on-chain sell volume is at $3,700, where over 991,000 addresses acquired 4.35 million ETH. If ETH rebounds from its current trading range, it could surpass $4,000 in the coming weeks. However, a further decline could lead the asset below $3,000. Analysts believe ETH could find support around the $3,500 region and initiate a fresh rally, but a continued decline could push its support level to the $3,181 and $2,966 levels.

A major factor that could propel a surge in the coming weeks is the approval of spot Ethereum exchange-traded funds (ETFs) from the United States Securities and Exchange Commission (SEC). The agency has delayed its decision on several applications for the products until May 23. Asset manager VanEck believes spot Ethereum ETFs could become bigger than their Bitcoin counterparts if the SEC eventually greenlights their launch. Standard Chartered Bank recently predicted that ETH could be worth $8,000 by the end of 2024 and $14,000 by 2025.