Ethereum (ETH) Withstands Price Battles: Is A Split Coming Soon?
TLDR
Ethereum price is battling resistance around $3,300-$3,400 after a recent correction. In the year ETH is down about 6.5% since the launch of Ethereum ETFs on July 23, but ETF flows have recently turned positive with net inflows of $33.67 million in July. The ETH/BTC pair gained 3.5%, indicating potential for the altcoin season. Analysts are eyeing a break above $3,400 that could push ETH to $4,000. Market uncertainty remains due to factors such as US government bitcoin transfers and the upcoming FOMC meeting.
Ethereum (ETH), the second-largest by market capitalization, is locked in a battle against key resistance levels as investors and analysts watch for signs of a potential breakout. As of July 31, 2024, ETH is trading around $3,312, down 1% in the last 24 hours.
In the year July 23 In the year In the year The cryptocurrency has faced downward pressure since the launch of Ethereum ETFs, with its price dropping approximately 6.5% since then. This decline was mainly triggered by the withdrawal of initial capital from these new investment products. However, recent data suggest a change in momentum may be in the offing.
According to Farside Investors, the nine US spot Ethereum exchanges saw net inflows of $33.67 million on July 30, ending a four-day streak of negative inflows. This positive shift in ETF flows could indicate renewed investor interest in Ethereum, which could support its price in the near term.
From a technical analysis perspective, Ethereum is currently struggling with resistance in the $3,300-$3,400 range. This area is useful as it coincides with both the 50-day and 100-day moving averages (EMAs). A daily close above $3,400 could pave the way for ETH to test the psychologically important $3,500 level, with some analysts seeing the possibility of a run to $4,000.
However, the market is cautious. The Relative Strength Index (RSI) on the daily chart is hovering around 49, suggesting that market conditions are currently neutral to slightly bearish. If Ethereum fails to breach the $3,330 resistance, it may face further downward pressure, with support levels identified at $3,250 and $3,230.
Adding to the volatility of the market is the performance of the ETH/BTC pair, which gained 3.5% to reach a ratio of 0.0491. This strengthening of Ethereum against Bitcoin has led some traders to speculate that an “altcoin season” may be on the horizon.
The broader cryptocurrency market has been influenced by several external factors. Bitcoin, the largest cryptocurrency, recently touched $70,000 before correcting around $66,000. This correction coincided with news that the US government had seized 29,800 bitcoins from the Silk Road dark web marketplace, sparking fears that it could be sold.
The crypto market is gearing up for the upcoming Federal Open Market Committee (FOMC) meeting, which may influence investor sentiment and market direction.
For Ethereum in particular, on-chain data from Santiment indicates that demand for ETH is growing alongside Bitcoin and Solana, compared to speculative assets like meme coins. While this focus on highs often precedes price increases, some analysts warn that this could be a sign of market caution.
Looking ahead, traders are closely watching technical indicators for signs of Ethereum's continued movement. The Moving Average Convergence Divergence (MACD) indicator on the ETH/BTC chart is approaching a buy signal, which could drive it further higher if confirmed. On the ETH/USD chart, a strong MACD crossover in positive territory suggests that at least resistance may be on the upside.
Ethereum bulls need to overcome high levels of resistance to ensure broad growth. A breakout above the inverse head and shoulders pattern on the ETH/BTC chart and a breach of the 50-day and 200-day EMAs are seen as strong bullish signals on the ETH/USD chart.
