Highlights:
- Ethereum is trending lower and is approaching the $2873.9 support
- Bearish sentiment due to Bitcoin’s price action after it lost $60k support
- Upcoming Ethereum ETF trading could trigger an Ether rebound
Like the rest of the cryptocurrency market, Ethereum is experiencing a notable decline today. At the time of going to press, ETH was down by 5.28%, trading at $3161.83. This decline mirrors the broader market trend, heavily influenced by Bitcoin’s recent price movements.
Advertisement
Yesterday, Bitcoin lost its crucial $60,000 support level and continues to trend lower, reaching a low of $57,559 today. This downward pressure on Bitcoin is significantly affecting ETH and other altcoins, creating a bearish sentiment across the market.
Bitcoin’s Influence on Ethereum
The correlation between Bitcoin’s price action and that of other cryptocurrencies is a well-observed phenomenon. As the largest and most influential cryptocurrency, Bitcoin’s movements often dictate the market’s direction. Ethereum, being the second-largest cryptocurrency, is no exception. The current downtrend in Bitcoin has weighed heavily on Ethereum, pushing it towards its multi-month support level at $2873.90.
Technical Analysis and Potential Scenarios
Technical analysis of Ethereum’s price charts indicates a bearish trend. The cryptocurrency is in the red and edging closer to its crucial support level. If bears manage to push Ethereum below $2873.90, it could potentially drop to as low as $2500. This scenario is plausible given the current market sentiment and the ongoing pressure from Bitcoin’s decline.
However, there are potential scenarios that could alter Ethereum’s current trajectory. If Ethereum hits and rebounds off the $2873.90 support or even avoids testing it due to a rebound in Bitcoin’s price, two possible outcomes could emerge.
The first is the onset of a consolidation phase for Ethereum, with prices fluctuating between the $3885.50 multi-month resistance and the $2873.90 support. This would provide a period of stability for Ethereum, allowing it to build momentum for a future move.
The second scenario hinges on a strong Bitcoin rebound. If Bitcoin manages to regain its footing and break through the $60,000 resistance, ETH could experience a bullish resurgence. In this case, Ethereum may breach the $3885.50 resistance level and rally to $4000 in the short term. This upward movement would depend heavily on Bitcoin’s performance, highlighting the interdependence of major cryptocurrencies.
Upcoming Ethereum ETF Launch
Beyond the immediate price movements influenced by Bitcoin, Ethereum has other factors that could drive its performance positively in the near future. A significant catalyst is the upcoming launch of Ethereum ETFs. According to a tweet by Nate Geraci of the ETF Institute, Ethereum ETFs could start trading as early as mid-July. He suggested that amended S-1 forms are due by July 8th, with potential final S-1s by July 12th, leading to a possible launch week around July 15th.
Wen spot eth ETF?
BBG sticking w/ mid-July.
Amended S-1s due July 8th.
Potential final S-1s by July 12th.
Would theoretically mean launch week of July 15th.
via @emily_graffeo @olgakharif pic.twitter.com/NG8xhtCP21
— Nate Geraci (@NateGeraci) July 3, 2024
The introduction of ETH ETFs is expected to impact the market substantially. ETFs typically bring increased trading volumes and attract a broader range of investors, including institutional players. This surge in trading activity could drive Ethereum’s price higher, potentially pushing it to new heights beyond the $4000 mark in the coming weeks. The anticipation of ETFs has already generated excitement among investors, and their actual launch could amplify this sentiment, leading to a solid bullish run for Ethereum.
What’s Next for ETH?
While ETH is currently facing downward pressure due to Bitcoin’s decline, there are several factors that could influence its price trajectory in the near future. The critical support level at $2873.90 will be crucial in determining whether Ethereum continues to drop or stabilizes.
Additionally, the upcoming launch of ETH ETFs presents a significant opportunity for a bullish turnaround. Investors will be closely watching Bitcoin’s movements and the progress of ETH ETFs. These two have a considerable role in shaping Ethereum’s price action going forward.
Read More
- Next Cryptocurrency to Explode in July 2024
- Crypto Price Predictions
- Best Crypto Exchanges in 2024
- Super Trump Price Prediction: sTRUMP Headed To $0.0034 Support Amid Marketwide Selloff
Advertisement
