Ethereum
Why is Ethereum (ETH) price down today? — TradingView News
Ethereum’s native token, Ether ETH/USDThe cryptocurrency’s price fell 4.24% to around $3,280 on July 3, marking its worst daily performance in three weeks. In doing so, the cryptocurrency has fallen about 18% from its local high of around $39,750, set more than a month ago.
The main factors contributing to the Ether slowdown include fears of a massive collapse in the Bitcoin market and its implications for the broader cryptocurrency market, as well as evidence of declining institutional interest.
Bitcoin FUD Spreads Across Cryptocurrency Market
Today’s losses in the Ether market are part of a broader downtrend across the entire cryptocurrency market, fueled by concerns about a potential large-scale selloff in Bitcoin.
It is worth noting that the decline in the cryptocurrency market is linked to the planned start of repayments to Mt. Gox creditors, which are expected to begin in early July. The latest evidence shows that creditors have started transferring the owed coins.
For example, a chart of Bitcoin transfer volumes shared by Charles Edwards, founder of hedge fund Capriole Investments, shows that tokens that were last moved seven to ten years ago have changed addresses again since July 2.
More than $9.4 billion worth of bitcoin is owed to about 127,000 Mt. Gox creditors, who have been waiting more than a decade to get their funds back. When these investors receive their bitcoin, many of them may choose to cash it out, which could impact the market.
As a result, the price of Bitcoin fell 4.25% intraday, dropping below $60,000 on July 3, with the price of ETH and the rest of the market suffering these losses.
Ethereum funds see largest outflows
The current decline in the Ether market follows a report from research firm CoinShares, which revealed that Ethereum funds saw their largest weekly outflows in nearly two years.
James Butterfill, a researcher at CoinShares, wrote:
“Ethereum saw the largest outflows since August 2022, totaling $61 million, bringing the last two weeks of outflows to $119 million, making it the worst performing asset year-to-date in terms of net flows.”
The outflows came the week that VanEck and 21Shares filed for Spot Solana (SOL) exchange-traded funds with the U.S. Securities and Exchange Commission (SEC).
Solana-based investment funds saw $1.6 million in inflows during the same period, suggesting increased investment interest in Ethereum’s main layer-1 blockchain rival.
ETH Price Technical Pullback
Ether’s losses today are part of a pullback trend that began after price tested a confluence of resistance including its 200-4H exponential moving average (200-4H EMA; the blue wave) and the upper trendline of its dominant descending channel pattern.
As of July 3, ETH price was testing the channel’s lower trendline as support for a possible rebound move, a scenario favored by the June resistance level at around $3,260.
Related: Ethereum to Outperform Bitcoin After ETF Launch — K33 Research
In case of a sharp rebound, the probability of the cryptocurrency reaching its 50-4H EMA (the red wave) at around $3,413 in July is high. A decisive close above the 50-4H EMA could push the price towards the upper trendline at around $3,475.
This article does not contain investment advice or recommendations. All investment and trading involves risk, and readers should conduct their own research before making any decisions.