Ethereum Bulls Losing Momentum, ETH Holding $3,700 Is Crucial
Ethereum bulls are in control as hopes of spot ETFs fan demand. However, for the uptrend to remain, prices must remain above $3,700
Ethereum is trending higher, but the upside momentum is beginning to fade. Looking at price action, ETH has support at the $3,700 level. On the upper end, resistance lies at $4,100. While bull bars are diverging from the upper BB, every low should technically be an opportunity for optimistic buyers to ramp up, expecting more gains above $4,100. On the flip side, if there is a dip below the recent contraction, sellers might flow back, forcing the coin towards the $3,300 level.
At current price levels, Ethereum is relatively firm and stable on the last day. Though it is down 2%, the coin is up 5% in the previous trading week. Following the slowdown in the leg up, the average trading volume is now at around $18 billion, a slight contraction from yesterday. Nonetheless, as long as there is FOMO, buyers will remain in control, and participation will be above average.
The following Ethereum news developments are worth watching:
- Analysts now assert that Ethereum is in a full-fledged bull market following the United States SEC’s approval of spot ETH ETF listing. Despite the cool-off, bulls are targeting $4,100 or better in the sessions ahead. Amid this, ETH reserves on leading exchanges like Binance and Coinbase continue to drop, reaching a six-year low last week.
- Once spot Ethereum ETFs begin trading in the next few months, Grayscale’s ETHE will likely be selling around $110 million of these shares every day for at least one month. If GBTC liquidation guides, then it is highly likely that ETH prices will dump.
Ethereum Price Analysis
ETH/USD is firmly on an uptrend.
Recently, Ethereum prices broke from a consolidation. While the breakout bars of May 26 were confirmed, the retracement earlier today signals strong resistance to the upside.
Still, aggressive traders can load on dips above $3,700, a critical support level, targeting $4,100. This outlook is in alignment with the bull bar of May 20.
Any dip below $3,700, reversing recent gains, might trigger a major sell-off, forcing Ethereum to $3,500 and later $3,300.
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