Ethereum On Recovery Path: Will Bulls Breach The All-Important Ceiling At $3,700?

Ethereum is floating higher when writing, looking at price action in the daily chart. There is a classic three-bar bullish reversal pattern. It follows the printing of the pin bar on June 14. Bulls have the upper hand, and a confirmation of the weekend’s gains would be a massive development for buyers. Nonetheless, this outlook would be cemented if prices breach $3,700 and stay above this line in the sessions ahead.

The rejection of lower prices means Ethereum is firm. Over the last 24 hours, the coin is stable though losses over the past week have been reduced to just 3%. Despite the positive fundamentals, engagement is also underwhelming. The average trading volume over the past day is above $12 billion. Still, since engagement is price-driven, any expansion could swiftly change this metric.

Traders should closely monitor the following Ethereum news today:

• Software evolution is inevitable in public ledgers. As Ethereum prepares for Pectra in late Q1 2025, security experts have identified key threats over client, operator, and cloud diversity. Of note, if a bug affects one of the network’s leading clients, then massive slashing penalties could destabilize the chain.
• Amid this, ETH balances in exchanges continue to plunge as users choose to stake and engage in DeFi activities. Over $64 million worth of ETH was recently moved from the Ethereum Foundation to an unknown third-party address.

Ethereum Price Analysis

ETH/USD is up roughly 6% from last week’s lows.

The reversal over the weekend was impressive.

Even so, all June 11 losses must be reversed. If this happens, Ethereum could rise above $3,700, possibly reviving demand.

As it is, sellers have the upper hand from an effort-versus-analysis since prices are still inside the bearish engulfing bar of June 11. At the same time, the recent trading volume has been, on average, low.

Aggressive traders may choose to unload on every high below $3,700, targeting $3,300 in alignment with the June 7 and 11 bear bars.