Ethereum Drops 15%: Will Spot ETF Catalyze Demand, Driving ETH Above $3,700?

Ethereum, following the performance of Bitcoin, is in red on the last trading day. ETH is bearish, at least from a technical perspective, but bullish from a fundamental standpoint. This position will only change if there is a convincing close above local resistance levels, the first being $3,700. Gains of June 29 and 30 were welcomed, but for this trend to evolve, there must be confirmations; this is missing at press time.

Presently, Ethereum is in red, sliding nearly 15% from May highs. Though traders are upbeat and expecting gains, movements are tight in the daily chart. So far, Ethereum is down 3% in the past day and relatively stable in the last week of trading. Meanwhile, the average trading volume remains low, at just over $10.8 billion.

Traders are closely watching the following trending Ethereum news:

• Uniswap, one of the leading DeFi protocols on Ethereum, will be releasing the Uniswap extension in the coming week. More people will engage with the mainnet through this tool, driving up demand for ETH.
• ConsenSys, the developer of MetaMask—a non-custodial wallet, has been charged by the United States SEC for allegedly enabling the trading of unregistered securities. At the same time, the development company has been sued for facilitating the staking of ETH without registration.

Ethereum Price Analysis

Though the crypto and the broader Ethereum community are watching out for the United States SEC to approve the trading of spot Ethereum ETFs, price action remains muted for now.

ETH/USD is under pressure, looking at price action in the daily chart.

Accordingly, traders may choose to short on every high below $3,700, targeting $3,300 in the short term.

Even so, in light of the spot Ethereum ETF expectations, long-term traders might choose to buy and HODL. This preview is valid as long as prices trend above $3,300.

Any decisive close below this level will invalidate the general bullish preview, permitting ETH sellers to push, angling for $2,800.

This position will be valid, especially if the bear breakout bar below June lows is with rising trading volume.