Ethereum Smashes $3,300 Resistance as Trump Flips Market Momentum

Ethereum ETFs officially launched on July 22, racking up cumulative trading volumes of over $4 billion in the first week; after initial market volatility, ETH price action looks poised to receive a major boost as August 2024 approaches.

After a highly anticipated launch, nine ETFs tracking the spot price of Ethereum began trading on US-regulated markets and exchanges on Tuesday, July 22. These ETFs sparked a wave of interest and drove high volatility in the ETH/USD spot markets.

However, the launch of Ethereum ETFs also attracted a wave of short-term traders looking to capitalize on the price movements. As a result, many traders opted to book profits after the ETF launch, leading to a downturn in ETH prices.

According to the chart above, Ethereum price slid by 13.37% between July 22 and July 26. However, the trend shifted on July 27 as Donald Trump expressed support for the crypto industry in a speech at the Bitcoin Nashville event.

The media attention surrounding Trump's speech triggered a bullish reversal in the ETH/USD markets over the weekend. At the time of writing on July 29, ETH price had broken above the $3,345 mark, reflecting an 8.74% uptick in the last 72-hours.

As the weekend rally extended into the early hours of Monday, it suggested that bull traders were anticipating a positive outlook for Ethereum ETFs and ETH price action in the week ahead.

Ethereum ETFs記録了40億5,000万ドルの1週間の取引高

While the media frenzy from Trump’s speech at the Bitcoin Nashville conference appeared to tip Ethereum price action into a bullish reversal over the weekend, markets are anticipating that trends in the Ethereum ETFs will have a larger impact on ETH prices as the week unfolds.

According to on-chain data culled from TheBlock, the 9 newly-launched Ethereum ETFs garnered a cumulative trading volume of $4.05 billion in the first week of trading between July 22, to July 26.

While ETH spot ETFs’ daily net flows have varied, the steady rise in daily trading volume has increased trading activity within the Ethereum ecosystem at large. Rising investor interest and the additional liquidity provided by the fresh capital inflows could propel the ETH price towards the $3,500 level in the coming days.

Ethereum Price Forecast: $3,500 Resistance Eyeballed as Trump Speech Fuels Recovery Rally

Thanks to the Trump-fueled rally, Ethereum price is reversing losses from last week’s sell-the-news trend, having gained 8.74% over the last 3-days. In addition to the rising trading volume from Ethereum ETFs, key technical indicators on the ETH/USD charts also support a bullish outlook for the week ahead.

First, the Ichimoku Cloud indicator suggests a potential bullish trend, with ETH attempting to break above the cloud. A crossover of the conversion line (blue) above the baseline (red) would confirm this momentum. Key resistance levels are at $3,349 and $3,500. Breaking these could lead to a prolonged Ethereum price rally towards the $3,800 level.

On the downside, the Choppiness Index (CHOP) at 47.80 indicates moderate market consolidation, suggesting a potential upcoming trend. Key support levels to watch are $3,226 and $3,278. Holding these levels would provide a strong base for upward movement.

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