Ethereum Capped Below $3,700 As ETH Turns Inflationary: Spot ETF A Silver Lining?
Ethereum is under pressure, trending below $3,700 and risks falling to $2,800 amid ETH becoming inflationary in the recent months
Ethereum, like BTC, recovered on June 25 but continues to trend in a tight range, looking at the performance in the daily chart. At spot rates, sellers remain in control. Even though there was a price expansion, bulls didn’t peel back the losses of June 24, meaning the probability of prices dropping remains high. As things stand, aggressive bears can look to short as long as prices are still below $3,700, a critical resistance level to watch out for in the short term.
This state of affairs and general inactivity in the last few hours shows in performance. To put in the numbers, Ethereum is stable in the past 24 hours but down roughly 4% in the previous week. At the same time, the average trading volume is around $12 billion, a drastic contraction on the last day of trading. Traders should be keeping a close eye on price action. Any expansion above June 24 hours would be a massive endorsement for optimistic bulls.
The following Ethereum news should be closely monitored:
- Although Dencun was a welcomed upgrade, further making transacting on Ethereum layer-2s cheaper, it has adversely affected the rate of ETH burning. Trackers now show that in 73 consecutive days, the coin has been inflating.
- The drop in ETH prices could be deflating, but events in the futures market are turning out positively. Analysts are banking on the change of sentiment once spot ETFs begin trading.
Ethereum Price Analysis
ETH/USD is weak when writing, looking at the performance in the daily chart.
As it is, sellers should consider loading on every attempt higher below $3,700, targeting $3,300 and $2,800.
This preview holds because the June 24 bar still influences the current state of price action from an effort versus result perspective.
As it is, the June 25 bar was even with lighter volumes, cementing this bearish outlook.
Any breach of $3,200 could fast-track the dump to $2,800 in the short term.
Buyers will only take control once there is a conclusive close above the June 24 high and $3,700. This reversal should be with high trading volume.
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