News, Price Analysis

Ethereum Approaches Make-or-Break Level: Here’s What Next For ETH Price

Ethereum (ETH) is currently trading at $3,297, marking a 4.29% decline in the past 24 hours and a 2.15% drop over the last seven days. Despite these short-term decreases, Ethereum still holds a strong market cap of $396.33 billion and has a substantial trading volume of $13.63 billion. 

Meanwhile, looking at the ongoing price trajectory of ETH many analysts are searching for signs of a potential recovery. Whether ETH manages to make or break its key level. 

ETH’s Key Support Level in Focus

Ethereum (ETH) has been experiencing a steady decline since March 27, characterized by a series of lower highs and lower lows. This continued decline has left many investors and analysts searching for signs of a potential recovery. However, the key level to watch for a possible bounce is at the 0.786 Fibonacci retracement, which coincides with a significant order block.

As Ethereum continues its fall, the 0.786 Fibonacci retracement level has emerged as a critical support zone. This level, which aligns with an important order block, could provide the necessary foundation for a potential reversal.

What Needs to Happen for a Bullish Reversal?

For Ethereum to shift from its bearish trend to a bullish one, a change in the lower timeframe market structure is essential. Specifically, analysts are looking for the formation of higher lows and higher highs. This pattern would indicate a shift in momentum and could pave the way for a sustained upward move.

Meanwhile, if Ethereum manages to hold at the key support level and shift its market structure, it could mark the beginning of a new bullish phase. This would be a positive signal for traders and investors, potentially leading to increased buying activity and a rise in ETH’s price.

ETH to Outperform Bitcoin?

The launch of spot Ether exchange-traded funds (ETFs) in the United States could see Ethereum outperform Bitcoin in the coming weeks. Bitcoin is expected to face selling pressure as $8.5 billion worth of Bitcoin is returned to creditors of the collapsed exchange Mt. Gox.

For the past 12 months, ETH’s value has been steadily declining compared to Bitcoin, hitting a yearly low of 0.045 on May 24.

However, the price of Ether relative to Bitcoin quickly reversed following the SEC’s unexpected approval of Ether ETFs. This surprise decision by the SEC caused ETH/BTC to increase to its current value of 0.055.

Read Also: Altcoins to Watch: Potential Wealth-Builders for July 2024

SOURCE

Leave a Comment

data data data data data data data data data data data data data