Ethereum Floats above $3,300: Will Spot ETF Demand Drive ETH to $4,000?
Ethereum is in an uptrend, at least from a top-down preview. Admittedly, there were losses last week. However, price action over the weekend cements bullish conviction. It could be the base for higher highs in the days ahead. As it is, ETH has support at last week’s low of around $3,100. However, since last week’s bears took over, the local resistance is between $3,300 and $3,500. If buyers are to take charge, a decisive close above this line will be crucial.
At spot rates, Ethereum buyers are confident. On the last day, the coin is stable, adding 5% but down 4% in the previous week of trading. The weakness of last week could offer opportunities for fundamental traders to double down, loading the dips. Notice that the average trading volume is at $11 billion, which is lower than average.
Traders are keeping tabs on the following Ethereum news events:
- Even with the launch of spot Ethereum ETFs last week, the impact on price has been weak. Of note, inflows have not supported the coin, and prices are lower, failing to break immediate resistance levels.
- Amid the launch of the derivative product, the activation of Dencun earlier this year has pushed the ETH supply higher. For this reason, some analysts are convinced the coin is losing its ultra-sound money narrative, giving BTC an edge.
Ethereum Price Analysis
ETH/USD is steady at spot rates.
From the daily chart, Ethereum has support at $3,100 and resistance at around $3,300 and $3,500.
However, the coin remains within a bearish formation, with the July 25 bar defining the trend.
As long as prices remain within the July 8 to 15 range, aggressive buyers can continue doubling down, targeting $3,500.
On the other hand, a bullish close above $3,500 could see ETH fly to $4,100 in a buy trend continuation pattern.
This expansion will be in alignment with gains from July 8 to 15.
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