Ethereum Trapped Below $3,700 As NFT Trading Decimated: Will It Fuel A Selloff?

Ethereum is firm, though it is clear that sellers have their way. The recovery of June 12 isn’t with the requisite participation since the average trading volume was lower. At the same time, it has a long upper wick, suggesting liquidation at the close of the NY session. Unless there is a firm close above $3,700, aggressive sellers might choose to offload the coin on every high, targeting local support levels.

Amid this volatility, Ethereum bulls must flow back, aligning with Q1 2024 bulls. As things stand, there are cracks. On the last day, ETH is stable. However, in the previous week of trading, the coin is down 9%. A sharp uptick in participation is needed for yesterday’s gains to be sustained, pushing the average trading volume to shoot higher, above the current average of $17 billion.

Ethereum daily chart for June 13

If there will be triggers to trader engagement, then investors should be closely monitoring the following Ethereum news events:

  • Even as the United States SEC plans to sue Ethereum and ConsenSys striking back, MetaMask has big plans for the multi-billion ETH staking field. Its developer, ConsenSys, said they are launching Pooled Staking, allowing small token holders to pool their coins and earn network rewards.
  • As attention shifts to spot ETFs and meme coins, the number of NFT traders on Ethereum continues to contract. According to data, there are less than 4,000 active participants, the lowest level since June 2021.

Ethereum Price Analysis

ETH/USD is firm, per the formation in the daily chart.

Even so, the bear bar of June 11 is engulfing and aligning with the lower BB.

Furthermore, the failure of June 12 bars to completely reverse losses means sellers have the upper hand from an effort-versus-result perspective.

As things stand, aggressive traders can look too short on any attempt higher but below the all-important $3,700.

The immediate target would be $3,500 and $3,300.

Any upswing above $3,700 would invalidate this preview.

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Dalmas Ngetich
Dalmas Ngetich
Technical Analyst and News Reporter
Dalmas is a technical analyst and news reporter covering Forex, commodities, crypto, NFTs, blockchain, DeFi, and blockchain.
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