Ethereum Retraces: Here’s Why ETH Bulls Must Decisively Break Above $3,500
July 22 2024 - 3:00PM
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Ethereum is firm when writing, rapidly rising after slipping to
around $2,800 earlier this month. As of writing, the second most
valuable coin is up by over $24% and remains in an uptrend despite
the scare of July 4 and 5. Ethereum Finds Strong Resistance At
$3,500 Even as buyers expect ETH bulls to press on and push the
coin above $3,700, a key resistance line, on-chain data shows that
there is resistance. According to IntoTheBlock data on July 22, ETH
has strong resistance at $3,500, which has been the case since July
16. Related Reading: Terra Classic Poised For 280% Rally On ‘Major
Recovery Strength’ – Analyst At this level, 3.13 million unique
addresses bought ETH at an average price of $3,547. Therefore, if
prices trend below this level, these holders are in red and
contemplating exiting at a loss. The fact that some addresses could
be willing to dump and exit the market when prices fall makes the
general environment fragile, a considerable hindrance to the
upside. This makes the situation even dire, considering that ETH is
not all that firm despite the expansion of July 15. From the daily
chart, the uptrend remains, but there are pockets of weaknesses due
to the sharpness of the July 4 and 5 dumps. The sell-off forced ETH
towards the $2,800 level, reversing gains of May 20. For
buyers to take over, reaffirming the uptrend of July 15, prices
must zoom past $3,500 but, most importantly, $3,700. This reaction
line is crucial and is the only local resistance buyers must
overcome for ETH to float above $3,900 and $4,100. Millions Of ETH
Pulled From Exchanges, Spot ETF Launch Fanning Demand For now,
there is strength in reading from on-chain analysis. Though over
three million users are in the red, more ETH continues to be moved
from exchanges. On July 19, IntoTheBlock data revealed that $126
million worth of ETH was moved from leading exchanges. Notably,
this development comes amid the expected approval of the first
batch of spot Ethereum ETFs in the United States. If the
United States Securities and Exchange Commission (SEC) greenlights
these products this week, it would be a massive win for ETH. The
regulatory clarity that comes with this move will be of importance.
United States SEC officials have yet to clarify the status of ETH.
Related Reading: Here’s Why The Bitcoin Price Crashed Below
$66,000, Taking Shiba Inu And Dogecoin With It However, once spot
Ethereum ETFs are listed in various bourses in the country, it
would be assumed that the regulator agrees that the second most
valuable coin is a commodity, just like Bitcoin. Feature image from
DALLE, chart from TradingView
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