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Highlights
- The ETH correction to 23.6% FIB indicates a healthy pullback for buyers to recuperate bullish momentum.
- The Ethereum’s Fear and Greed Index at 30% highlights a bearish sentiment among market participants.
- The intraday trading volume in Ether is $10.4 Billion, indicating a 28% gain.
Weekends are characterized by a drop in market activity until the following Monday. The lower trading volume and reduced liquidity over the weekend caused crypto assets to stabilize after a recent sell-off. The Bitcoin price found temporary support around $55,000, easing the sell pressure on altcoins. Ethereum price also showed renewed demand around $2900. However, with several analysts anticipating the Ethereum ETF launch around mid-July, there is potential for a major reversal in ETH’s price.
Also Read: Justin Sun Faces $66M Loss As Ethereum Records 10% Fall, Here’s Why
Ethereum Price Analysis Hints $3800 Rally Amid Healthy Pullback and Potential ETF Approval
The current correction in Ethereum price was initiated in late May as the price reverted from $3974. This fresh lower-high formation of the daily chart indicates the buyers lack sufficient momentum to chase new highs, thus shifting the price trajectory sideways.
The bearish turnaround tumbled the Ether value by nearly 30% to seek support at the confluence of $1815 and 23.6% Fibonacci retracement level. Along with broader market correction, the U.S. SEC’s delay in approving ETH ETF issuers’ S-1 drafts has contributed to bearish sentiment.
On Thursday, Bitwise filed an amended S-1 for its spot Ethereum ETF ahead of the July 8th deadline. Bloomberg’s ETF analyst Eric Balchunas highlighted that the SEC’s recent comments required minimal updates, indicating a quick turnaround for Bitwise.
However, the filing has no fee details yet, which are expected to be revealed next week. Bitwise’s proactive filing suggests they are expediting the approval process for their Ethereum ETF.
Also Read: Altcoins To Stake Without Hesitation As Bitcoin Goes Burst
Moreover, the President of the ETF Store Nate Geraci, has expressed confidence that spot Ethereum ETFs will start trading within the next two weeks, mostly around the week of July 15th. Geraci also notes that the ETH price has dropped by over 20% since the unexpected 19b-4 approvals in late May.
Will be *shocked* if spot eth ETFs not trading w/in next 2 weeks…
Later next week a possibility, but think week of July 15th more likely.
Interestingly, price of eth ↓ 20%+ since “surprise” 19b-4 approvals in late May.
— Nate Geraci (@NateGeraci) July 6, 2024
If approved, the ETH price could defy a sluggish market trend/mild selling pressure and rebound 36% to challenge the downsloping trendline around $3800. A bullish breakout from the resistance is crucial to signal renewed recovery in the Ethereum coin.
Technical Indicator
- EMAs: The 200D EMA at $3080 and 100D Exponential Moving Average at $3330 highlight the immediate resistance against buyers.
- RSI: The Relative Strength Index (RSI) dived to the oversold region below 30%, which could attract dip investors in the market.
Frequently Asked Questions (FAQs)
1. What does "Spot Ethereum ETF" mean?
2. What is the Relative Strength Index (RSI)?
3. What is an S-1 filing?
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