Ethereum, which mirrors the performance of Bitcoin and other altcoins, has returned to above $3,000, days after falling below $2,800. With the second-most valuable cryptocurrency recovering, sparking optimism among token holders and battered traders, a close above $3,200 will be crucial in stimulating demand.
Ethereum Rally: Will Bulls Be Able to Break $3,200?
According to IntoTheBlock on July 10, if Ethereum Edges above At $3,200, this would be a huge development for traders. When this happens, nearly 2 million entities that traded ETH at this price point are expected to make a profit.
Therefore, if prices retest this level, those who have taken long positions can exit at breakeven. Alternatively, other “investors” who anticipate further gains on the horizon can double down and take advantage of the anticipated rally.
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So far, there are hints of strength. However, even though sellers are still in control, a break above $3,300 will be crucial in the short to medium term. $3,300, looking at the candlestick arrangement of the ETHUSDT pair on the daily chart, was a former support, but now it is resistance.
The breakout, with the ideal volume rise, is likely to serve as a base for further gains, taking the coin towards a key liquidation level at $3,700 and then $3,900 later.
Conversely, if sellers dominate the market, reverse recent gains, and match the losses of July 4 and 5, a drop below $2,800 would signal a continuation of the trend. Given the candlestick arrangements, Ethereum would drop to multi-week lows in this event, even dropping to $2,500.
All eyes on spot ETFs as whales pile into Ethereum scarcity
Overall, analysts are optimistic and expect Ethereum to rise in value. The expected launch of Ethereum exchange-traded funds in the coming days is a big catalyst behind these bullish expectations.
Just as Bitcoin ETFs have opened the door to institutional exposure to the world’s most valuable cryptocurrency, we are likely to see the same influx into Ethereum. With institutional demand, proponents believe Ethereum will surge even higher, breaking $4,100 and hitting its 2024 high in the coming months.
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Interestingly, the prospect of a spot Ethereum ETF launch doesn’t seem to be changing traders’ expectations. On-chain data reveals that bullish sentiment is at its peak. Lowest in one yearindicating caution among ETH holders.
Meanwhile, as the data continues on the chain, It is clearETH outflows from exchanges have been on the rise recently. All exchanges, including Binance and Coinbase, control 10.17% of the ETH in circulation. Parallel data shows Offers Another portion, representing 28% of the total ETH in circulation, is at stake.
Featured image of DALLE, chart from TradingView