Ethereum Price Analysis Warns $2500 Breakdown As Bearish Pattern Emerges

The second-largest cryptocurrency Ethereum initiated July’s second week on a bullish note. Following the recent market sell-off, the ETH price found suitable support at $2815— a multi-month horizontal level intact in February 2024. This support coincides closely with the 23.6% Fibonacci retracement creating a pivotal point for Ether to rebound or lead further correction. Will the developments in ETF approval help this asset regain bullish momentum?

Also Read: ETH/BTC Price Prediction: Is Ethereum Price Reversing or Is It a Bull Trap?

Ethereum Price Analysis: Key Levels to Watch as ETF Approvals Loom

The first of July contributed significantly to the ongoing correction in Ethereum as its price fell from $3516 high to $2815 registering a loss of 20%. The aforementioned level aligned closely with 50W EMA and 23.6% FIB creating a high area of interest for buyers.

In the last 48 hours, the Ether price jumped 8.76% to trade at $3071, while the market cap jumped to $370.2 Billion. Amid the broader market consolidation, the upswing can be attributed to the development of ETH ETF approval.

Also Read: Crypto Prices Today July 9: BTC Bounces Near $57K Propelling Crypto Market Rally

First S-1 just rolled in today from VanEck.. they already had their fee so nothing to see here really, they just putting ball back in SEC’s court. Expecting the rest today except for Bitwise who did theirs last week. pic.twitter.com/gF6OZTKIrs

— Eric Balchunas (@EricBalchunas) July 8, 2024

VanEck recently updated its S-1 registration statement for its forthcoming spot Ethereum ETF, introducing only minor revisions concerning the custodial aspects of the fund. The filing occurred early on Monday, positioning.

Notably, firms like 21Shares, BlackRock, Fidelity, Franklin Templeton, and Grayscale also submitted their filings later that same day. This collective movement among investment heavyweights suggests a growing institutional interest in cryptocurrency-based ETFs. 

Market participants anticipate that trading for these Ethereum ETFs might commence in the second half of July.

If approved, the ETH price could sustain its recent reversal and rise 25% to downsloping resistance trendline around $3800.

A bullish breakout from the overhead is crucial for ETH buyers to signal uptrend continuation.

On a contrary note, the Ethereum price shows a double top formation in the daily chart. This reversal pattern keeps the possibility for extended correction intact.  A potential breakdown from the $2815 will intensify the pressure and could plunge $2000.

Technical Indicator

• EMAs: The crypto buyers could get a better confirmation of a bullish reversal if the price reclaimed immediate resistance of 200D Exponential Moving Average at $3080. The ETH coin current below indicates a net bearish sentiment.
• RSI: The Relative Strength Index (RSI) reverted from the oversold region indicating the overextended selling has brought some cool-off in price for selling to regain strength.

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