Ethereum Faces Severe Rejection Around $4,000 As ETF Decision Nears: What’s Next for ETH Price?

Ethereum (ETH) has seen significant price volatility recently, due to increased anticipation of the approval of Ethereum spot ETFs in the United States. This positive news led to a 28% increase in the price of ETH in one week, reaching highs last seen in mid-March. Although the price briefly dropped to around $3,700, key indicators suggest that this decline is short-lived, and Ethereum is expected to continue its upward trajectory.

Bullish Traders Face Liquidations

One of the most compelling indicators of Ethereum’s future price growth potential is the growing open interest in ETH futures and trading volume. Data suggests that ETH open saw a 4.3% gain over the past 24 hours, currently at $16.4 billion. Additionally, trading saw a gain of over 14%, reaching $60 billion.

Learn more: Gensler Teases Upcoming SEC Decision on Ethereum ETFs: Here’s What to Expect

However, the recent sharp decline in the crypto market has solidified bearish positions near the $4,000 mark. At the start of the US trading session, Bitcoin (BTC) fell from around $70,000 to below $68,000, while the price of Ethereum (ETH), after hitting its all-time high level since mid-March at over $3,900 early Thursday, fell to around $3,700. According to Coinglass, total liquidations have exceeded $110 million, and long positions are facing liquidations close to $90 million.

The drop could have been triggered by a large ETH sell order from trading firm Symbolic Capital Partner. Blockchain data showed that the company sold 6,968 ETH worth $27.4 million in one minute. Additionally, several whales have become active as their selling pressure continues to increase.

Ethereum co-founder Jeffrey Wilke transferred 10,000 ETH ($37.4 million) to Kraken, possibly to make a profit, rebalance his portfolio, or gauge the trend. This is part of a larger pattern in which more ETH is being deposited onto exchanges, suggesting increased trading and potential market instability. This could strengthen Ethereum price resistance, which could trigger more frequent sell-offs.

What’s next for the ETH price?

Ether price recently hovered near the $3,950 mark, reflecting a significant upward trend. However, the bears strongly defended this level, leading to a decline towards $3.7k. Despite strong rejection, bulls have taken control and are aiming for a retest of the psychological $4,000 mark. At the time of writing, Ether was trading at $3,802, an increase of 1.3% in the last 24 hours.

The bulls are poised to challenge the $4,100 resistance level ahead of the ETF decision. Positive news could send the price skyrocketing later. A breakout could signal a change in the long-term market trend, potentially sending the ETH/USDT pair towards the $5,000 level.

On the other hand, for the bears to regain control of the market, they need to push the price below the 20-day EMA and break through the critical support level of $3,600. Such a move could trigger a fall to $3,350. However, the likelihood of a downtrend is currently lower due to growing hopes that the SEC will approve the ETH ETF.

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