As a researcher with a background in cryptocurrencies, I have observed Ethereum’s price action over the past two weeks and have formed an opinion based on the available data. The second largest cryptocurrency by market capitalization has seen medium volatility, hovering above $3360. This sideways movement can be attributed to the uncertainty sentiment surrounding Ether due to the prolonged correction in Bitcoin and the development around spot Ethereum ETFs.
As a crypto investor, I’ve noticed that Ether, the second largest cryptocurrency, has exhibited moderate volatility over the past two weeks, trading slightly above $3360. The ongoing correction in Bitcoin and the ongoing developments surrounding the spot Ethereum ETF have sparked feelings of uncertainty among investors, leading to a sideways trend for Ethereum. However, despite this volatility, the broader trend remains bullish. In fact, recent on-chain data indicates potential for a bullish reversal for Ethereum prices.
Key Support Levels In Ethereum Price Amid ETF Updates
As an analyst, I would describe the situation as follows: In late May, Ethereum’s coin price started following a correction trend after reaching a peak of $3975. This downturn was fueled by Bitcoin’s price decrease, causing Ethereum to drop by around 15.5%. The ETH price found support near the 100-day Exponential Moving Average (EMA) at approximately $3360.
Supporting this level on the Ethereum chart, the extended rejection candles with long tails suggest a robust demand that may be reinforced by the progress towards an Ethereum Spot ETF. According to Satoshi Club’s recent update, six companies have submitted amended SEC applications for such ETFs.
Six companies have revised their applications with the Securities and Exchange Commission (SEC) to seek approval for listing Ethereum spot exchange-traded funds (ETFs).
Two of them disclosed the commission fees of 0.19% and 0.2%.
Three companies indicated the initial investment volume, which is significantly lower than that of…
— Satoshi Club (@esatoshiclub) June 22, 2024
Two companies announced management fees of 0.19% and 0.2%, while three others disclosed initial investment requirements that were much smaller than BlackRock’s. The upcoming listing of an Ethereum spot ETF in the United States is expected to have a significant influence on Ether’s price, given the recent surge in popularity for Bitcoin ETFs.
Based on data from CryptoQuant, the Market Value to Realized Value (MVRV) ratio of Ethereum is surpassing Bitcoin’s currently. This signifies heightened market activity for Ethereum, and historically, such a trend has been followed by upward movements in other altcoins, with Ethereum serving as a trailblazer.
$ETH MVRV is rising faster than $BTC MVRV.
This suggests that #ETH’s market is heating up.
Historically, when #Ethereum surges, other alts tend to follow.
— CryptoQuant.com (@cryptoquant_com) June 21, 2024
Despite persistent high overhead pressure on Ethereum (ETH) prices, it’s possible that ETH may decline by approximately 6% before encountering significant buying demand at the ascending trendline. This support level has remained robust since November 2023, fostering a “buy-the-dip” mentality due to the series of higher lows it has maintained.
If the support holds, the ETH price could take the next recovery leap targeting the $3900.
To help buyers gain more control over their Ethereum investment, a significant break above the highlighted blue trendline is essential. This event could potentially propel the Ethereum price toward its all-time high of $4842.
Technical Indicator:
- Pivot Levels: With the ETH price projecting a potential for a new high, the Pivot indicator highlights potential resistances at $5371, followed by $6000.
RSI: A daily Relative Strength Index slope wavering around the 50% mark indicates a neutral sentiment among market participants.
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2024-06-22 20:56