On Thursday, Ethereum (ETH) witnessed a 3.3% decline, falling from above $3,040 to current levels around $2,930, with daily trading volumes reaching $13.5 billion, according to Yahoo Finance data. This downward trend has largely erased Wednesday's gains following US CPI data, as bearish sentiments reemerge in the market.

The recent death cross in the ETH/BTC pair has further intensified pressure on the Ether price, pushing it to new three-year lows. Coinbase research analyst David Han pointed out several factors contributing to ETH's underperformance, including the approval of spot bitcoin ETFs in the US, reinforcing bitcoin's store-of-value narrative and macro asset status.

Han also highlighted lingering questions about Ethereum's fundamental positioning within the crypto sector, especially as the SEC is expected to reject applications for multiple spot Ethereum ETFs later this month. Concerns arise from the possibility of Ethereum being classified as a security, a question not raised regarding bitcoin ETF products.

Moreover, competition from other layer-1 networks like Solana detracts from Ethereum's dominance as the primary network for decentralized app (dApp) deployment. Ethereum's recent EIP-1559 upgrade, aimed at reducing transaction fees, has lowered the burn rate of ETH, which some view as bearish for the cryptocurrency.

Citron Research founder Andrew Left expressed bearish sentiment, stating that he shorted Ether, anticipating it will be labeled as a security and won't receive the same approval as Bitcoin.

In addition, the ETH/BTC pair remains locked in a multi-year downtrend, with whales potentially hesitant to accumulate ETH amid Bitcoin's perceived stability and acceptance.

Looking ahead, Ethereum's price faces continued pressure, struggling to overcome resistance at major short-term moving averages. The 21-day moving average has proved to be a significant hurdle for ETH in recent trading sessions, suggesting that bears maintain control of the market in the short term.