The first half of June was notably bearish for the crypto market as Bitcoin price hit a low of $65000 amid several unfavorable updates. The FUD surrounding macroeconomic development, Bitcoin miners capitulating, the ETFs outflow, and whale distribution combined to fuel the recent correction in the majority of major cryptocurrencies including Ether. The Ethereum price dropped to a three-week low of $3362 on Friday but has now witnessed an ease in selling pressure amis stable the weekend.
Also Read: Crypto Headlines of The Week: Bitcoin & ETH Ride Rollercoaster, XRP & LUNC Make Waves
SEC’s Potential ETF Approval and Whale Investments Boost Ethereum Price
Ethereum Price Analysis| Tradingview
During the recent market downturn, Ethereum formed a new lower high at the $3950 resistance level on the daily chart. The coin buyers failed to surpass the last high indicating an initial shift in market sentiment where traders prefer to sell on bullish bounces.
On June 14th, the coin’s price peaked at $3,887 before experiencing a significant drop of 13.5%, bringing it down to a low of $3,364. This price level coincides with the 100-day EMA, which has now begun to stabilize the declining Ethereum price, aiding its recovery to $3,509. Concurrently, the market capitalization has increased to $431.2 billion.
This surge is likely triggered by SEC Chair Gary Gensler’s recent statement to lawmakers, suggesting that the agency could finalize the approvals for listing and trading spot ETH exchange-traded funds (ETFs) over the summer.
Moreover, in a recent tweet, renowned trader Ali (@ali_charts) highlighted a significant trend in the Ethereum market. According to his analysis, Ethereum whales have made substantial investments over the past three weeks, purchasing more than 700,000 ETH, which amounts to approximately $2.45 billion.
#Ethereum whales have bought over 700,000 $ETH in the past three weeks, totaling approximately $2.45 billion! pic.twitter.com/sfmXnkqD49
— Ali (@ali_charts) June 15, 2024
This notable accumulation by large holders despite the ongoing correction indicates strong confidence for the Ethereum price to rebound.
Also Read: Ethereum Permanent Holders Scoop 298K ETH In A Day, ETH Price Rally Soon?
If the broader market correction persists, the ETH price may dive to $3200 and seek support from the long-coming support trendline. As per the past record, the Ethereum coin rebound thrice from dynamic support indicates a high accumulation for investors.
That said, the daily chart indicates a new resistance trendline forming above, suggesting that Ethereum might enter a sideways trading pattern. A breakout above this barrier is needed for buyers to regain control, and bolster a rally to $3900.
Technical Indicator:
Exponential Moving Average (EMA): The 100-and-200-day EMAs as dynamic support preventing ETH price from a major correction
MACD: A bearish crossover between the MACD (blue) and signal (orange) indicates a seller as the key driving force behind the current price movement.
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Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
