3 Ethereum price indicators point further down in ETH
The price of Ether (ETH) has underperformed Bitcoin and the broader crypto market over the past month, after ending the launch of spot Ethereum ETFs up 26% to $3,563. This underperformance has led traders to question whether the altcoin will have a sustainable recovery. ETH price is down 4.3% in the last seven days and 2.11% in the last month.
To put this into context, the price of Bitcoin (BTC) has risen by 7.7% over the past 30 days, while the overall cryptocurrency market capitalization has grown by 6.2% over the same period.
and other upper layer 1 tokens. The price of BTC has increased by 7% in the last 30 days, other high-cap layer 1 tokens, Solana's SOL and Cardano's (ADA) 27A market volume and technical indicators show that Ether is weakening and may record further losses before boarding. In continuous recovery.
The price of Ether has followed Bitcoin since May.
Ether Bitcoin and other upper layer 1 tokens are underperforming. BTC's price has increased 7% over the past 30 days, while other top-tier 1 tokens, Solana's SOL and Cardano's (ADA) have increased 27% and 6%, respectively, over the same period.
Although the ETH/BTC ratio has risen 5% over the past three days, it has underperformed in the long run, falling 14% between May 23 and July 30.
Currently, there are several reasons for ETH's underperformance, including Ethereum-specific factors such as the exit from US-based Ether exchange-traded funds (ETFs) in 2024.
Moreover, Ethereum network activity (by certain metrics) has decreased in the past month. According to Glassnode data, daily active addresses (DAA) on Ethereum decreased from 711,078 addresses on June 22 to 426,472 on July 10.
Although Ethereum remains the network to beat in the Layer 1 sector, Solana has recently taken market share in this segment in terms of onchain activity and total payments, among other onchain metrics.
According to data from Artemis, Solana dominates the Layer-1 sector in terms of daily active addresses and daily transaction volume. Ton and Ethereum have been fighting neck and neck since May 17th, with Ton surpassing Ethereum for the first time and gaining a foothold around early June, beating Ethereum DAAs.
The SpotEther ETF weighs the price of ETH issued.
Newly-launched ETFs got off to an inverse start, seeing inflows of more than $1.23 billion since they began trading on July 23. But those inflows were dwarfed by net inflows of more than $1.723 billion from grayscale-converted ETF products.
Data from Farside Investors shows that combined net inflows for the space Ethereum ETFs now stand at $440 million.
These gains correspond to a weekly value of $285 million in Ethereum-based investment funds, including US ETFs.
“This week saw some investors withdraw funds from Greyscale's current US$1.5bn trust, which resulted in an outflow of US$285m last week,” said James Butterfill, researcher at asset management firm CoinShares.
Related: Trump's Bitcoin push, spot Ether ETF debut and more: Hodlers Digest, July 21-27
Ethereum bears form resistance at $3,500
The continued outflow from Ethereum-based funds is a reflection of the negative technical background. In particular, Ether's recent attempt to recover from the $3,500 level was rejected by supply congestion. This is an indication that this area presents a stubborn obstacle in the way of ETH recovery.
Data from IntoTheBlock reinforces the importance of this resistance zone. The Out of Money Area Price (IOMAP) model shows that this area is in the $3,457 and $3,557 price range, with 4.18 million addresses having previously bought approximately 1.93 million ETH.
If this protection level sees a large amount of activity from the sellers in the short term, the price of Ether is expected to go deeper.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
