What to Expect for Ethereum Price in July Based on Historical Trends

Sahil Mahadik
Updated
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Highlights

  • The triangle pattern formation is known to restore the prevailing trend with a short break and signal uptrend continuation after the key resistance trendline breakout.
  • The Ethereum’s Fear and Greed Index at 44% accentuates a neutral to bearish sentiment among market participants. 
  • The intraday trading volume in Ether is $6.95 Billion, indicating a 38% gain.

June Month was notably bearish for the cryptocurrency market with many assets revisiting their monthly support. Amid the market sell-off, the Ethereum price plunged from a high of $3887 to a low of $3232 registering a loss of 16.9%. However, the downfall lies within the healthy retracement of Fibonacci tools indicating a strong could allow ETH bulls to counterattack.

Also Read: Crypto Market This Week: Ethereum ETF, FOMC Minutes, US Job Data & Trade Deficit

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Ethereum Price Eyes Stability as 78% of ETH is Held by Long-Term Holders

BITSTAMP:ETHUSD Chart
Ethereum Price| Tradingview

The near-term trend in Ethereum price is sideways evidenced by a new lower high formation at $3975 in late May. This reversal indicates the overhead supply is high from market sellers and ETH buyers would need time to recuperate its momentum.

Connecting the overhead peaks with a trendline reveals a potential triangle formation as the altcoin has also received dynamic support from an ascending trendline since October 2023.

The Ethereum price currently trades at $3389 and holds a market cap of $407.3 Billion. If the supply pressure persists, the coin price could plunge another 5% to seek support at the long-coming trendline.

The renewed buying pressure from the trendline could uplift the asset by 14-15% and challenge the triangle’s upper boundary at $3860. A bullish breakout from the triangle pattern will signal a better confirmation of uptrend continuation.

Also Read: ETH/BTC Pair Poised for Breakout as Ethereum ETF Launch Approaches: What’s Next?

In a recent tweet, the prominent crypto analytics firm IntoTheBlock revealed a striking statistic: 78% of Ether is currently held by long-term holders. Despite the volatility in Ethereum’s price, the proportion of ETH held by long-term investors has steadily increased, indicating a strong belief in the asset’s future value.

Ethereum’s price performance in July has exhibited a mix of gains and declines over the past several years, reflecting the broader market’s volatility and investor sentiment. The biggest gain was +56.62% in 2022, while the largest drop was -27.29% in 2017.

On average, July has a positive return of +6.95%, though the median return is -4.41%, indicating mixed performance.

Ethereum Monthly returns(%)
Ethereum Monthly returns(%)| Coinglass

However, with the ongoing development around U.S-listed Ethereum ETFs, anticipated to launch around mid-July, the odds strongly lean on buyers’ favor.

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Technical Indicator

  • BB Indicator: An upswing in the lower boundary of the Bollinger Band indicator losing bearish momentum and additional support for buyers to rebound.
  • Moving Average Convergence Divergence: A negative crossover between the MACD and signal line highlights the near-term trend is intact and bearish.
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Frequently Asked Questions (FAQs)

1. What role do long-term holders play in Ethereum's market stability?

A3: Long-term holders, who currently own 78% of Ethereum, play a crucial role in its market stability. Their sustained investment indicates a strong belief in Ether's long-term value.

2. What impact could the launch of U.S-listed Ethereum ETFs have on its price?

The anticipated launch of U.S-listed Ethereum ETFs could significantly influence ETH price by potentially increasing buyer interest and investment. This development is expected to provide easier access for a broader range of investors.

3. How does the "Fear and Greed Index" affect Ethereum trading decisions?

The Fear and Greed Index measures investor sentiment in the market, which can be a useful indicator for traders to gauge the general mood among market participants.
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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.