Ethereum Approaches $3,500; BlackRock Says Institutional Demand Is Low

Ethereum is steady but bearish, stuck within a bear breakout formation. ETH has resistance between the $3,500 and $3,600 zone

Dalmas Ngetich•Monday, March 25, 2024•1 min read

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Ethereum is firm, shaking off sellers at press time. Even with the recovery, there are prints of weakness following recent losses. The coin is changing hands below $3,500 and is still far from 2024 highs. As prices consolidate, the path of least resistance remains northward, at least from a top-down preview.

As it is, ETH is bullish. The total market cap is up 2% to over $413 billion. Concurrently, trading volume is around $12 billion, up 1% but below the recent average of around $20 billion. This formation suggests that despite the price recovery, traders are still unsure.

Ethereum daily chart for March 25

In the short term, traders can keep track of the following Ethereum news events:

Analysts speculate that the United States Securities and Exchange Commission (SEC) is keen on classifying ETH as a security. Recent news shows that they have been issuing subpoenas to companies involved with the Ethereum Foundation, casting doubts on spot Ethereum ETF approval. If ETH is classified as a security, it means retail traders in the United States will be barred from freely trading the coin.
BlackRock has also revealed that only a few clients are inquiring about spot Ethereum ETFs. So far, a BlackRock executive said most clients are keen on stacking Bitcoin.

Ethereum Price Analysis

ETH/USD is bullish, as aforementioned.

From a top-down analysis, buyers have the upper hand. A critical reaction point is at $3,500, a round number. However, optimistic traders should closely monitor the zone between $3,500 and $3,600.

Technically, Ethereum is within a bear breakout formation. Though prices recovered over the weekend, it remains within the bearish bar of March 19.

Therefore, a close above the middle BB with rising volume is necessary for the uptrend to be valid.

Conversely, losses below $3,100 will sway price action to favor sellers.