Ethereum Weak Despite Spot ETF Approval: Will ETH Crash Below $3,000?

Ethereum is stable but weak when writing, looking at events in the daily chart. Though there is optimism, sellers are still in a commanding position. As it is, the long lower wicks of June 24 and 26 suggest that there is support at around the $3,200 to $3,300 zone. Still, sellers remain in charge until there is confirmation of June 25 gains and a push higher above $3,500. For now, aggressive traders can look to ride the trend, doubling down on selling positions.

The weakness in the daily chart is evident. In the past day, ETH is down 1% and 6% in the previous week of trading. Although losses weren’t as sharp as early this week, traders are bearish. The average trading volume is down, sliding to $11 billion in the past day. Prices are down but within a broader range, with caps at $3,900 and $2,800 on the lower end. A breakout in either direction could see a spike in trading volume.

Ethereum Daily Chart for June 27

Traders are closely monitoring the following Ethereum news events:

  • Eyes are on the United States SEC and Gary Gensler. The agency has approved the trading of spot Ethereum ETFs, and these products will be available from July 4.
  •  Amid this, ETH continues to stretch gains versus BTC. Some analysts say the second most valuable coin is a better offer considering the lack of miner liquidation or the effect of hacks.

Ethereum Price Analysis

ETH/USD is in red at spot rates despite positive news.

As traders gear up for the anticipated launch of spot ETF, the coin is struggling for momentum.

The immediate trend is bearish, and every high below $3,700 and $3,500 could offer entries for sellers to target $3,000 and $2,800.

This preview holds since prices are inside the June 24 bear bar, giving sellers the upper hand from an effort–versus–result perspective.

Unless otherwise, any sharp turn above $3,700 will nullify this outlook.

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ABOUT THE AUTHOR See More
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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