Ethereum Finds Strong Resistance At $3,500
Ethereum, the second most valuable cryptocurrency, is currently experiencing a significant uptrend, having risen by over 24% as of writing. Despite a scare on July 4 and 5, the coin remains on an uptrend. However, on-chain data reveals that Ethereum has strong resistance at $3,500, which has been the case since July 16.
A total of 3.13 million unique addresses purchased Ethereum at an average price of $3,547. If prices trend below this level, these holders are likely to be in the red, contemplating exiting at a loss. This situation creates a fragile environment, making it challenging for the coin to continue its upward trajectory.
Millions Of ETH Pulled From Exchanges, Spot ETF Launch Fanning Demand
On-chain analysis reveals that despite the precarious situation, more Ethereum continues to be moved from exchanges. On July 19, data from IntoTheBlock revealed that $126 million worth of Ethereum was transferred from leading exchanges. This development comes amid the expected approval of the first batch of spot Ethereum ETFs in the United States.
The expected approval of these products would bring regulatory clarity to the market, as it would be assumed that the United States Securities and Exchange Commission (SEC) agrees that Ethereum is a commodity, just like Bitcoin. If the SEC greenlights these products this week, it would be a massive win for Ethereum.
Ethereum Price Trend
The daily chart shows that the uptrend remains intact, but there are pockets of weakness due to the sharp sell-off on July 4 and 5. The sell-off forced Ethereum prices to drop to around $2,800, reversing gains made on May 20.
For buyers to take over and reaffirm the uptrend, prices must break above $3,500 and then $3,700. This would be crucial, as it would pave the way for Ethereum to float above $3,900 and $4,100.
However, the fragile environment created by the 3.13 million unique addresses that are likely to be in the red may hinder the upside. These holders may be willing to dump and exit the market if prices fall, which would further pressure the coin.
Conclusion
Ethereum is currently experiencing a significant uptrend, but on-chain data reveals strong resistance at $3,500. The fragile environment created by the holders who are likely to be in the red may hinder the upside. However, the expected approval of spot Ethereum ETFs in the United States could bring regulatory clarity and increase demand for the coin.
FAQs
What is the current trend of Ethereum’s price?
Ethereum is currently experiencing an uptrend, having risen by over 24% as of writing.
What is the strong resistance at $3,500?
A total of 3.13 million unique addresses purchased Ethereum at an average price of $3,547, and if prices trend below this level, these holders are likely to be in the red, contemplating exiting at a loss.
What is the significance of spot Ethereum ETFs in the United States?
The expected approval of spot Ethereum ETFs would bring regulatory clarity to the market, as it would be assumed that the United States Securities and Exchange Commission (SEC) agrees that Ethereum is a commodity, just like Bitcoin. This could increase demand for the coin and provide a boost to its price.
What is the current environment for Ethereum holders?
The current environment is fragile, as many holders are likely to be in the red and may be willing to dump and exit the market if prices fall, which would further pressure the coin.
What is the key to Ethereum’s price breaking above $3,500 and $3,700?
The key is for buyers to take over and reaffirm the uptrend by breaking above these resistance levels. This would pave the way for Ethereum to float above $3,900 and $4,100.
