Ethereum
Is Ethereum Price Reversing or a Bull Trap?
Ethereum price has increased by 5.6% in the past 24 hours to trade around $3,070 during European business hours. This rise comes amid the ongoing Bitcoin sell-off in Germany. BTC has also seen a 3.4% increase in the past 24 hours and is trading at $57,189.
Ethereum price could rebound if this happens
ETH Price ETH price broke out of a descending channel last Thursday, a non-bullish move on its part. Ethereum price dropped to a low of $2,811 as Bitcoin continued to bleed. However, ETH price found further support below $2,815, using it as a cushion against the fall. ETH price consolidated around this local low over the weekend before showing renewed strength on Monday before heading into Tuesday.
Ethereum price action revisited the 200-day simple moving average (SMA), which is currently acting as resistance. If Ethereum breaks above this key indicator, market sentiment could turn bullish.
Ethereum Price Prediction shows that the asset could likely rise above the 200-day moving average, but succumb to the 50-day moving average, falling into a consolidation zone between $3,371 and $2,811. This will also bring it back into the descending channel.
If ETH bulls manage to exert more power, they can break above the descending channel and the potential consolidation zone to reach the previous yearly high at $3,967. On the other hand, if the bears prevail, ETH price could break below the $2,815 support and drop to $2,200, with a temporary depreciation around $2,490.
On the other hand, Bitcoin Price hit a low of $53,550 during the recent selloff (which may still be ongoing) before rebounding, according to data from CoinGecko watch. The asset appears to have found support around the $55,000 level, although history suggests that this may not last long. If BTC continues to decline, the next major support is around $50,000, and below that, $46,000.
Why is the price of Ethereum increasing?
Markets have some green spots today, with Ethereum being one of the biggest winners. VanEck was the latest to file an S-1 for its Ethereum spot ETF yesterday, indicating a high probability of the ETF being approved soon. As of July 9, 2024, all Ethereum spot ETF applicants have filed their updated S-1.
Meanwhile, as Germany continues to sell Bitcoin indiscriminately, ETFs saw $384 million in inflows last week, showing that investors are using market fear to gain exposure to BTC at discounted prices.
Conclusion
Ethereum price action is showing signs of a potential reversal, but uncertainty persists as market participants debate whether this surge represents a genuine trend change or a misleading bull trap. A close watch on key indicators could shed light on whether ETH can maintain its momentum against BTC in the days ahead.
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Frequently Asked Questions (FAQ)
Grayscale, VanEck Fidelity, 21Shares, Franklin Templeton, BlackRock and Bitwise have all filed for a spot Ethereum ETF.
Speculation indicates that the Ethereum ETF will launch in mid-July.
According to the analysis, after the launch of an Ethereum spot ETF, ETH could surge to $6,600.