Ethereum (ETH) May Retest the Critical $3,000 Support Level by the End of July

Ethereum (ETH) dropped 1.8% on Wednesday despite the successful launch of ETH ETFs, which attracted $10.2 billion in assets and saw net inflows of $107 million.

Ethereum price dropped below key support levels on Wednesday, despite the successful launch of ETH ETFs, which saw net inflows of $107 million and attracted $10.2 billion in assets. The second-largest cryptocurrency by market cap now risks sliding toward the critical $3,000 support level by the month’s end.

As highlighted in a 10X research report, the initial excitement surrounding the Ethereum ETF launch seems to be fizzling out, leading to what has historically become a “sell-the-news” scenario. This trend has been observed during similar events in December 2017, April 2021, October 2021, January 2024, and now again in July 2024.

After the launch hype, a market correction follows, as observed during these prior launches. What’s Causing This Sell Pressure?

The report also points out the unfortunate timing of the ETF launch, which coincides with the distribution of Bitcoin from Mt. Gox, adding extra selling pressure to the crypto market.

To make matters worse, the US tech earnings season has started on a sour note, with major sell-offs observed from companies like Alphabet and Tesla. With 40% of the market capitalization set to report next week, a conservative outlook due to weakened consumer spending could further impact the market.

Moreover, Ethereum appears particularly vulnerable under current market conditions. Its fundamentals, including new user growth and revenue, have stagnated. Before the ETF launch, 10X Research highlighted Ethereum as overbought a view supported by a 6% decline since the report.

Gear Up for a Short-Term Haul

At the time of writing, Ethereum trades around $3,420, down 1.8% for the day. Coinglass data shows $14.15 million in 24-hour liquidations, with a bearish sentiment prevailing as indicated by the ETH Long/Short Ratio dropping to 0.91.

Similar to Bitcoin’s behavior post-launch, Ethereum may experience a brief decline before a potential rebound. Currently, the RSI level is hovering below the midline, suggesting that bears have an advantage in controlling the current trend.

Technical indicators reveal a possible decline toward the $3,203 support level before a potential rise to $3,731 resistance.

ETH May Drop to $3K?

If the market regains momentum, Ethereum might test resistance at $3,400 and aim for $3,730 in the coming weeks. However, if bearish trends continue, Ethereum could drop toward its crucial support level of $3,000 within this month.

Investors are Advised to Buy BTC, Sell ETH In a nutshell, analysts are advising ETH traders to “buy Bitcoin and sell Ether to the ETH traders.” You can also sell Ether options to pay for Bitcoin options. This strategy capitalizes on the current market dynamics, betting on Bitcoin’s potential rise and hedging against Ether’s volatility.

The above is the detailed content of Ethereum (ETH) May Retest the Critical $3,000 Support Level by the End of July. For more information, please follow other related articles on the PHP Chinese website!