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Ethereum (ETH) has made a notable 5.6% increase in the last 24 hours and is currently trading around $3,070. This price rise occurred during a period when Bitcoin sales continued in Germany. Similarly, Bitcoin also saw a 3.4% increase, surpassing $57,000. The recent market activity has raised questions about whether Ethereum’s price movement indicates a reversal or a potential bull trap. Developments on the ETH side are being closely monitored, especially for the future of the altcoin market.
Key Scenarios for Ethereum Price
Ethereum’s ETH price dropped significantly last week, pushing the price below the descending channel formation. With Bitcoin’s price also dropping sharply, ETH had fallen to as low as $2,800. At that time, ETH found support around $2,815 and used this level to consolidate over the weekend. On Monday and Tuesday, ETH showed renewed strength by revisiting the 200-day simple moving average (SMA), which now acts as a resistance level.
Breaking above the 200-day SMA could boost market sentiment. However, Ethereum faces the challenge of the 50-day SMA, which could force it into a consolidation zone between $3,371 and $2,811 and push it back into the descending channel. For a sustained uptrend, ETH bulls need to break out of this channel and consolidation zone, aiming for the previous year’s high of $3,967. Conversely, if bears prevail, Ethereum’s price could fall below the support level at $2,815 and potentially drop to $2,200. In this scenario, a temporary support level might be around $2,490.
While Ethereum’s price action shows signs of a potential reversal, it remains uncertain whether this rise represents a genuine trend change or a deceptive bull trap. Key indicators need to be closely monitored to determine if ETH can maintain its momentum compared to BTC in the coming days. Market participants are especially advised to keep an eye on the 200-day and 50-day SMAs, as these will be crucial in understanding Ethereum’s next moves.
Currently, Bitcoin‘s activity continues to guide the cryptocurrency market. The crypto king rebounded to find support around $55,000 after hitting a recent low of $53,550. Experts warn that if selling pressure continues, there is potential for a drop to $50,000 and $46,000.
Bullish Catalysts for ETH
The recent rise in Ethereum’s price is attributed to various factors, including VanEck’s recent application for a spot Ethereum ETF, which indicates a high likelihood of ETF approval soon. All spot Ethereum ETF applicants submitted their updated S-1s to the SEC as of July 9, 2024.
Moreover, despite Germany’s Bitcoin sales, spot Bitcoin ETFs saw an inflow of $384 million last week, indicating that investors took advantage of market fear to buy BTC at discounted prices.
