Ethereum Price Targets $4,000 as BTC Liquidations Persist

The cryptocurrency market is facing fresh sell-offs after a busy week of action, highlighted by US presidential candidate Donald Trump’s speech at the Bitcoin conference in Nashville. Ethereum price has started to reverse its upward trend, up 1.5%, as bulls look to advance to $4,000 later this week.

After a brief sell-off over the weekend, Bitcoin climbed above $70,000 on Monday but encountered volatility amid fears of a sell-off as the U.S. government moves BTC.

The largest cryptocurrency traded at $67,227 according to CoinGecko data, down 1% on the day. Arkham Intelligence reported the transfer of 29,800 Bitcoin by the U.S. government in two batches seized from Silk Road, a dark web marketplace.

Investors appear to have been rattled by this transfer, even though it is not the first in July. The first transfer took place during the first week of the month, with the government transferring 237 BTC worth around $14 million at the time.

It is still unclear what is driving these transfers, given that the same government transferred an additional 60 BTC last week.

Nevertheless, fears of an imminent sell-off are spreading like wildfire. If BTC maintains its downtrend, a retest of the $66,000 support could follow before the next major rally above $70,000.

ETH/BTC Price Analysis: Can Ethereum Hit $4,000 This Week?

The ETH/BTC pair gained 3.5% to a ratio of 0.0491 after successfully testing the $0.0474 support again. Traders are expecting a much stronger outcome this week, especially with the buzz around Ethereum exploding following the approval of the spot ETF.

Santiment’s on-chain data confirmed this bullish thesis by focusing on the price of Bitcoin, Ethereum, and Solana. Interest in these three assets has skyrocketed compared to sectors like meme coins.

Prices in the cryptocurrency market tend to rise steadily as investors turn to the best cryptocurrencies. However, Santiment argues that this is a sign of caution. Conversely, when attention shifts to more speculative assets, it is a sign of growing greed.

An incoming buy signal from the Moving Average Convergence Divergence (MACD) indicator could further accelerate the uptrend. Traders will be watching for the blue MACD line to cross above the red signal line.

ETH/BTC Price Chart | Tradingview

Based on the daily chart, a break above the inverse head and shoulders pattern would play a significant role in affirming the annual index. Ethereum Price Prediction And BTC Price Prediction.

What’s Next as Ethereum Price Defends $3,300 Support?

Ethereum price sought support at $3,300 reinforced by the 20-day exponential moving average (EMA) after correcting from $3,400 resistance.

ETH/USD Price Chart | Tradingview

A continued rally above the $3,300 support comes from a buy signal displayed by the MACD. With the MACD moving above the neutral zone into the positive territory, the path of least resistance is bound to remain to the upside.

However, traders will be watching for a break of the 50-day and 200-day EMA resistance, while a breakout from the channel would invalidate a potential correction of the bearish flag pattern.

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Frequently Asked Questions

Bitcoin fell back below $68,000 on Monday after the US government announced that it was moving BTC from Silk Road, heightening fears of a selloff.

After the launch of spot ETFs, Ethereum price could start to climb, mimicking Bitcoin’s surge to a new ATH in Q1. Ether’s rise will depend on the growing demand for ETFs.

As Bitcoin approaches its all-time high, higher support above $70,000 is needed to sustain the uptrend, with bulls targeting $80,000 and above.

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