Ethereum Dropping: Is It Time to Load on Dips above $3,300 on Spot ETF, Biden Tailwinds?
Ethereum is falling, extending losses to over 5% in the past week. At this pace, ETH will likely slip below $3,300 towards $2,800
Ethereum is mirroring the general performance across the crypto scene. Although analysts are pinning their hopes on a spot ETF that might begin trading in early July, bears are forcing prices lower. Technically, bears are in a commanding position. This preview will hold as long as ETH is still trading below $3,700. Bulls appear to be struggling amid a wave of lower lows despite prices being defined by the May 20 bullish engulfing bar.
As of writing, the path of least resistance remains southwards—at least in the short term. Reflecting this outlook is Ethereum’s performance. On the last day, the coin is down 4%, extending those losses to over 5% in the previous trading week. At the same time, the average trading level is around $13 billion. Though this is expected, considering the low liquidity over the weekend, the sharp contraction is a concern. Conservative traders should closely monitor how prices react at $3,700—if buyers succeed—or $3,300 in the short term.
Traders are keeping tabs on the following Ethereum news today:
- Although prices are under pressure, open interest on Ethereum Futures on the CME continues to rise. What this means is that institutions appear to be positioning themselves, ready to push prices higher. Still, the direction of the breakout, despite the optimism, needs to be confirmed on price charts.
- Analysts expect the upcoming presidential discussion in the United States to profoundly impact not only Bitcoin but also top altcoins, mostly Ethereum. It comes amid rumors of Biden plans to “flip the narrative on crypto.”
Ethereum Price Analysis
ETH/USD is slipping, just like Bitcoin
Nonetheless, fundamentals heavily favor Ethereum in the short term, especially with news of spot ETF trading as soon as early July.
In light of this, aggressive traders might choose to align their plans with the May 20 bar, loading the dips above $3,300.
This outlook will be invalid should there be more stacked losses below this reaction level.
On the flip side, conservative traders can wait for a solid break above $3,700, or even $3,900, before committing, targeting $4,100 and $4,500.
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