Ethereum Spot ETFs Launch, Crypto Records Positive Day!

After Ethereum spot ETFs were formally introduced, ETH saw a 1.28% return. Let's examine ETH's prospects going forward.

The ETH logo features a blue background with a roaring bull on one side and a red bear on the other. The power bar of every one is shown at the top.
Ethereum (ETH) Exchange Rate

As was noted in the research on July 17, Ethereum dropped to the bottom of its range before rising by over 25%. The price of cryptocurrency increased from $2,800 to $3,500 in less than two weeks. The excitement leading up to the formal debut of Ethereum spot ETFs on July 23 underscored this volatility.

On the first day, this occurrence had little impact on cryptocurrency. In fact, for the past week, ETH has been steadily rising in the $3,560–$3,350 level. It is noteworthy that this consolidation is occurring below the most recent high of Ethereum's short-term decline, which serves as a significant value zone.

Technically speaking, it would be desirable to break above this zone in order to modify the cryptocurrency's short-term structure.

As of this writing, Ethereum is trading slightly less than $3,450. Thus, selling interest is beginning to materialise, as evidenced by the most recent ETH movements. Despite this being concerning, the cryptocurrency trend is still positive.

The fact that the price of Ethereum is still above both its 50-day and 200-day moving averages lends credence to this. Based on price and oscillators, we can observe that Ethereum momentum is stabilising, indicating that volatility is likely to resume.

A keen trader and investor in the cryptocurrency space, Elie FT, worked with us to do the current technical analysis. A trainer at Family Trading, a group of thousands of independent traders that has been operating since 2017, today. In a formal yet welcoming setting, you will find lives, educational materials, and mutual support related to the financial markets.

With a minor pre-market acceleration, Ethereum perpetual open interest seems to have tracked the path of its underlying price. This indicates a rise in ETH speculative activity.

When combined with a favourable funding rate, Ethereum confidence is apparent. They are not important from a liquidation standpoint, but they do represent most long liquidations in recent times.

The previously noted liquidation zone at $3,500 has been reached, according to the ETH/USDT three-month liquidation heatmap, which is probably going to cause selling interest. Currently, notable liquidation zones are mostly located above Ethereum's price.

Take note of the $3,650–$3,750 range, and the most important zone at $3,900 above that. But there are two pricing ranges that are slightly lower than the present one: $3,300 and $3,000, respectively.

There is a greater chance that Ethereum may see a period of elevated volatility when the price gets closer to these levels since it may cause a big trigger of orders. Consequently, these zones should be of great interest to investors.

We could expect a bullish continuation going to the region between $3,600 and $3,700 if Ethereum's price remains above $3,000. That would mean that $3,900 would be the next resistance to take into account. The bullish trend may continue, suggesting a target price of $4,000 or possibly $4,100. This would be an increase of more than 19% at this time.

Ethereum may head back around $2,900–$2,800 if it is unable to maintain its current level of support over $3,000. If the negative trend persists, $2,700 would be the next level of support to take into account. We can see the $2,600 area of interest further down. This would indicate a about 24% decrease at this stage.

In summary
After hitting the lower end of its range, Ethereum experienced a notable reversal due to the expectation of the introduction of Ethereum spot ETFs.

In spite of this development, the cryptocurrency is consolidating inside a week's worth of ranges, exhibiting a short-term bearish trend. Although there has been selling interest recently, the overall trend is still bullish. Certain signs and the recent stabilisation point to a return of volatility.

Therefore, in order to validate or refute the present theories, it will be imperative to closely monitor the price response to the various critical levels. In each case, it's also critical to stay on the lookout for potential "fake outs" and market "squeezes".

Last but not least, keep in mind that these evaluations are only grounded in technical standards and that other, more fundamental variables may also cause the price of cryptocurrencies to fluctuate quickly.

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