🔷 Why is Ethereum (ETH) Price Down

🎆 Market Overview: Ether (ETH) dropped over 1.66% to $3,700 on May 30 as part of a broader market correction, with overall cryptocurrency market capitalization dipping by up to 2.50%.

🎆 Key Factors Driving Ether's Price Lower:

✔️ 1. Rising Bond Yields: Weaker demand for short-term U.S. Treasury notes has led to rising bond yields, making safer investments more attractive and drawing funds away from cryptocurrencies.

✔️ 2. Decline in ETH Holdings by Large Investors: A notable decrease in ETH held by large investors, or "whales," has added pressure on the price.

✔️3. An Overbought Correction: Ether's decline began on May 29 when its four-hour relative strength index (RSI) approached the overbought territory. An overbought RSI often precedes a correction.

✔️ ETH has also formed a double top pattern, a bearish reversal indicator. If ETH breaks below the neckline support at $3,684, it could decline to $3,400, aligning with the 200-4H exponential moving average (EMA). A bounce from the neckline support with rising trading volumes could invalidate this pattern, targeting a rise to around $3,850.

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