Ethereum
What’s next for the ETH price?
The $4,000 level for ETH price now seems like a distant dream. Ether has remained below its main resistance channels in recent days, even with the upcoming launch of its spot exchange-traded funds (ETFs) in the United States. Some believe the lack of bullish momentum for ETH comes from uncertainty over the regulator’s timeline for approving individual S-1 fund deposits. However, as the price of ETH falls, there is an increase in accumulation which could provide some relief with a potential rebound.
Ethereum Netflow Turns Negative Amid Regulatory Pressure
Ethereum (ETH) price is struggling to surpass the $4,000 mark. On-chain data shows investors capitalizing on gains, contributing to a potential local spike. According to data from Coinglass, the ETH price saw a total liquidation of over $50 million in the last 24 hours.
From a regulatory perspective, even if the U.S. Securities and Exchange Commission (SEC) approves filings from BlackRock, Fidelity, VanEck and other companies this week, investors are concerned that current market conditions could favor not demand for Ethereum ETF.
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Data from CryptoQuant on the 7-day moving average taker-to-sale ratio shows more sellers than buyers in recent days. The ratio remained below one and fell sharply, indicating that many traders are actively selling Ethereum, possibly to speculate or take profits. This sharp drop in the ratio is a negative sign, suggesting that Ethereum’s current price decline could continue if this selling trend continues and a peak is reached.
Data from IntoTheBlock shows a slight positive trend as investors buy more Ethereum during the recent price drop. The Netflow metric for Ethereum, which measures the amount flowing in and out of exchanges, has fallen below its average midline. Over the past two days, around 20,000 Ethereum was withdrawn from exchanges as prices fell. This indicates that the decline in Ethereum price has increased buyer interest, which could lead to a rebound soon.
What’s next for the ETH price?
Ether price falls sharply below its EMA trendlines and targets a retest of the $3,100-$3,300 support region. However, buyers could defend this level aggressively. At the time of writing, the ETH price is trading at $3,490, down over 5.1% in the last 24 hours.
The 20-day EMA is falling and the Relative Strength Index (RSI) is hovering in the oversold region, indicating a solid advantage for the bears. A fall below the $3,200 level could intensify selling activity, potentially sending the ETH/USDT pair down to the 50-day SMA at $2,858.
On the other hand, if the price can sustain a rise above the EMA trendlines, it would indicate strong buying interest at lower prices. This could allow the bulls to attempt to push the price towards the key resistance at the $3,730 level. Breaking this barrier could pave the way for an increase up to $4,000.