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Highlights
- Ethereum faces significant resistance at $3.2K.
- Approximately 2 million addresses could sell holdings at this resistance to mitigate losses, bringing selling pressure to the asset.
- However, a bullish catalyst could help absorb the selling pressure.
Ethereum, the second-largest cryptocurrency by market cap, has once again sparked speculations among crypto market participants. Meanwhile, all eyes are on the crypto amid soaring anticipation over a potential Ether ETF launch soon.
However, ETH has recently reclaimed the $3K level, but on-chain data indicates that it faces significant resistance at $3,200. So, let’s take a closer look at why the $3.2K level poses a significant threat to Ethereum’s price.
Ethereum Holders Ready To Sell ETH
A recent Into The Block data revealed that approximately 2 million addresses that previously traded Ethereum at around the $3,200 price level are currently holding ETH at a loss. This paves the path for potential selloffs as these addresses break even with price gains ahead, adding selling pressure to the asset.
However, a bullish catalyst in the pipeline might prevent this from happening. For context, the approaching launch of an ETH ETF (exchange-traded-product) could serve as a catalyst for a remarkable rising price action in the future. Aligning with this, the commencement of ETF trading could counteract the selling pressure, in turn generating positive momentum in the asset due to money inflow.
However, it’s worth noting that Ethereum has continued to struggle to reach its resistance level of $3,200.
Also Read: Institutional FOMO On Spot Bitcoin ETF As German Govt Continues BTC Sell-off
ETH Price Faces Turbulency
At press time, the ETH price showed a 0.20% dip in value, trading at $3,100.56. The token’s 24-hour bottoms and peaks were $3,025.51 and $3,129.02, respectively.
Coinglass data further validated ETH’s turbulent movement, spotlighting an uncertain investor sentiment in the market. ETH Futures OI jumped 0.51% to $12.67 billion, while its derivatives volume dipped 30.71% to $21.15 billion. Notably, the RSI was recorded to be hovering at 40, underscoring that the asset is neither overbought nor oversold.
However, it’s crucial to note that the current market sentiments could take a paradigm shift ahead with the approval of spot Ethereum ETFs. CoinGape Media recently reported that a whale bagged a staggering 16K ETH in light of the looming ETF.
Altogether, broader market sentiments remain optimistic about Ethereum’s future price movements, although traders and investors currently exercise caution due to the highly volatile nature of the crypto realm.
Also Read: Solana ETF Approval Stands Strong: VanEck Exec
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