Ethereum Resurgence: Will Spot ETF Tailwinds Lift ETH Above $3,300?

Ethereum remains bearish, per the formation in the daily chart. Though there has been a recovery following the discouraging close below $2,800 last week, the push higher over the weekend is impressive. The July 8 bar closed bullish, with rising volume. Even if buyers are back in the equation, bears have the upper hand since the bear breakout of July 4 and 5 remains. A close below $2,800 will cancel out bulls, paving the way for more losses.

Presently, Ethereum is stable in the last day but down 11% week-to-date. The path of least resistance is southwards, and a crucial support that must be broken is the $2,800 level. Any break below this line could see ETH crash even further, igniting a price dump towards $2,500 and $1,800. So far, the average trading volume in the past day remains at over $21 billion.

The following Ethereum news events are worth tracking:

• Yesterday, VanEck officially filed for S-1 registration forms for its spot Ethereum ETFs. It remains to be seen when the United States SEC will okay the product. However, many are confident the derivative will launch in the next few days.
• According to Galaxy Digital, spot Ethereum ETFs will see roughly $1 billion in monthly flows, a massive boost for the coin. Even so, price sensitivity will be enhanced by ETH staking. Currently, billions worth of ETH remain locked, earning holders passive rewards.

Ethereum Price Analysis

The path of least resistance is southwards despite the consolidation at around $3,000.

Technically, ETH/USD is weak and in red, falling roughly 30% from March 2024 highs.

As long as prices are below $3,000 and, most importantly, $3,300, sellers might offload on every attempt higher toward this liquidation zone.

Aggressive sellers will target $2,800.

However, if Ethereum dumps below last week’s low, sellers can double down. Their immediate target would be $2,500.

Any unexpected spike above $3,300 at the back of rising volume invalidates this outlook.