ETH/BTC Price Prediction: Is Ethereum Price Reversing or Is It a Bull Trap?

Ethereum is among the biggest gainers today, as the vast majority of the market recovers. While Bitcoin trails ETH in gains, it also looks promising as it holds above the $55,000 support level.
By Evans Karanja
ETH/BTC - Ethereum price

Highlights

  • Bitcoin ETFs saw $384 million in inflows last week despite Germany’s selling.
  • VanEck was the last to file an S-1 for its spot Ethereum ETF yesterday.
  • As of July 9, 2024, all six spot Ethereum ETF applicants have filed their updated S-1s.

Ethereum price increased by 5.6% in the last 24 hours to trade at around $3,070 during European business hours. The increase comes against the backdrop of Germany’s continued Bitcoin sell-off. BTC also saw an increase of 3.4% over the last 24 hours, and is trading at $57,189.

CRYPTO MARKET

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Ethereum Price To Rebound If This Happens

Ethereum Price

ETH price broke below a falling channel on Thursday last week, a non-bullish move on its part. Ethereum price plummeted to a low of $2,811 as Bitcoin continued to bleed. However, ETH price found another support below around $2,815, using it as a cushion against the fall. The price of ETH consolidated around this local bottom over the weekend before showing some renewed strength on Monday going into Tuesday.

The Ethereum price action has revisited the 200-day simple moving average (SMA), which is currently acting as a resistance. If Ethereum breaks above this key indicator, market sentiment may turn to bullish.

Ethereum price prediction shows the asset may likely break above the 200-day SMA but succumb to the overhead 50-day SMA, falling into a consolidation zone between $3,371 and $2,811. This will also put it back into the falling channel. 

If ETH bulls can exert more power, they can break above the falling channel and the potential consolidation zone to hit the previous yearly high of $3,967. On the flip side, if the bears prevail, ETH price may break below the $2,815 support and drop lower to $2,200, with temporary cushioning around $2,490.

On the other hand, Bitcoin price hit a low of $53,550 in the recent sell-off (which may still be in play) before bouncing back, as data from CoinGecko shows. The asset seems to have found support around the $55,000 level, though history suggests this may not hold for long. If BTC continues to fall, the next major support is around $50,000, and below that, $46,000.

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Why is Ethereum Price Rising?

The markets today have spots of green, with Ethereum among the biggest gainers. VanEck was the last to file an S-1 for its spot Ethereum ETF yesterday, indicating a high likelihood of ETF approval soon. As of July 9, 2024, all spot Ethereum ETF applicants have filed their updated S-1s.

Meanwhile, while Germany continues to sell Bitcoin indiscriminately, ETFs saw $384 million in inflows last week, showing that investors are using the fear in the market to get exposed to BTC at discounted prices.

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Bottom Line

Ethereum’s price movement shows signs of a potential reversal, but uncertainty lingers as market participants debate whether this uptick represents a genuine trend change or a deceptive bull trap. Close monitoring of key indicators may provide clarity on whether ETH can sustain its momentum relative to BTC in the coming days.

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Frequently Asked Questions (FAQs)

1. Which firms have filed for Spot Ethereum ETF?

Grayscale, VanEck Fidelity, 21Shares, Franklin Templeton, BlackRock, and Bitwise have all submitted filings for a spot Ethereum ETF.

2. When will Spot Ethereum ETF launch?

Speculations say that Ethereum ETF will launch mid-July.

3. Can Ethereum reach $5000?

According to analysis, after the launch of a spot Ethereum ETF, ETH could rally to $6,600.
Evans Karanja
Evans Karanja is a crypto analyst and journalist with a deep focus on blockchain technology, cryptocurrency, and the video gaming industry. His extensive experience includes collaborating with various startups to deliver insightful and high-quality analyses that resonate with their target audiences. As an avid crypto trader and investor, Evans is passionate about the transformative potential of blockchain across diverse sectors. Outside of his professional pursuits, he enjoys playing video games and exploring scenic waterfalls.
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ETH

Ethereum

$3,001.4416 7.38% (24h)

24 Hours volume

$30.55B

Market Cap

$361.45B

Max Supply

NA

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