Ethereum Ranging: Why Is $3,700 So Hard For ETH Bulls To Break?

Ethereum is up, looking at the formation in the daily chart, but slipping following yesterday’s contraction. Overall, buyers are upbeat, relying on fundamental factors and what the United States SEC plans to do. Eyes are on the spot Ethereum ETF, and what it could mean once it begins trading, possibly in the next few trading weeks. Although there is a chance of ETH falling, the inevitable inflows could propel the coin above the $4,000 level.

Currently, Ethereum is down roughly 4% in the past day and sliding 2% in the previous trading week. Even though buyers are pushing prices higher, the resistance remains at $3,700. As it is, it means buyers need to do more and break above the local liquidation line. To do that, participation must pick up. So far, the average trading volume on the last day is $15 billion; which is below this week’s average.

Traders and investors are watching the following Ethereum news:

• Ethereum, analysts argue, could be a better asset than Bitcoin thanks in part to tokenization. This feature means users can bring real-world assets on-chain, adding value to ETH—and propelling it to new levels.
• Despite the consolidation, analysts think Ethereum DeFi protocols are generating record revenues and are at their strongest levels since 2020. Once they roll out new upgrades, value will further trickle into ETH.

Ethereum Price Analysis

ETH/USD is flat when writing but firm, soaking in selling pressure of the better part of this week.

The first local resistance is $3,700. It will be cleared once there is a complete reversal of June 11—a massive shift that will catalyze demand.

Before then, aggressive traders should look to short on highs below $3,700, targeting $3,300.

However, conservative traders can wait for a breakout from the current range in either direction.

If bulls of May 20 dominate, then there could be entries above $3,700.

Conversely, losses below $3,300 could see ETH fall to $2,800.