Lower volume raises doubts about $3,000 breakout

Ethereum price analysis highlighted another relief rally in the second week of July. The bullish reversal took the asset from the monthly support at $2,825 to $3,196, registering a weekly gain of 13.2%. This rally followed market enthusiasm for the potential approval of ETH spot ETFs in the coming week and was tempered by broader market supply. Is the correction trend over?

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Ethereum Price Analysis: Will ETH Spot ETF Approval Propel ETH to $4,000?

Ethereum Price Analysis | Tradingview

The medium-term trend of the Ethereum Price analysis shows sideways action on the daily chart. The formation of a new lower high at $3,974 and recently the same low at $2,815 projects ETH price into a consolidation trend to recover the exhausted bullish momentum.

A recent reversal of the $2,815 support has pushed the asset to $3,191 in a week, while the market cap has surged to $383.5 billion. However, the decline in volume accompanying the rally suggests a decrease in market participants’ interest in opening long positions.

This lack of conviction from buyers suggests an unsustainable recovery and the potential for further correction. ETH. If the coin price retraces to the upper trendline (descending blue line), sellers could challenge the $2,815 floor to extend the current correction.

The potential breakdown could accelerate supply pressure and push the asset to $2,400.

However, the potential approval of the ETH Spot ETF could counter the bearish thesis aimed at changing market sentiment.

Read also : Ethereum Price To Hit $5,000 As ETH ETF Speculation Triggers Bullish Comeback

Nate Geraci, president of the ETF Store, recently tweeted that the SEC’s approach to S-1 filings for spot Ethereum ETFs closely mirrors their handling of 19b-4 filings, which have been marked by significant discretion. Geraci remains optimistic about approval, expected next week, stressing that there is no justifiable reason for any delay.

Thus, the potential approval could intensify the buying dynamic and propel the ETH Price Prediction target above the $4,000 mark.

Technical indicator

• EMA: The 20 days and 50 days Exponential Moving Averages (EMA) serve as dynamic resistance levels during a bullish move, signaling strong ongoing downward momentum.
• RSI: The Relative Strength Index (RSI) returned to 45%, indicating neutral sentiment among market participants.

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Frequently Asked Questions (FAQ)

The potential approval of an ETH spot ETF (Exchange-Traded Fund) is significant because it could increase institutional and retail investment in Ethereum.

A “relief rally” refers to a temporary increase in the price of an asset after a period of decline.

The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of price movements on a scale of 0 to 100.

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