Ethereum has been on a wild ride lately. After dipping to around $2,800 earlier this month, it’s now back on the rise, gaining over 24%. But while buyers are hoping for a surge past $3,700, there’s a big obstacle in the way.
The $3,500 Wall
Data shows that Ethereum faces strong resistance at $3,500. A lot of people bought ETH at this price point, and if it falls below it, they’ll be losing money. This could lead to a sell-off, making the market even more unstable.
The recent price drop on July 4th and 5th exposed some weaknesses in Ethereum’s recovery. To truly confirm an upward trend, the price needs to break through $3,500 and then $3,700. These are crucial levels that need to be conquered for Ethereum to reach $3,900 and $4,100.
Hope on the Horizon: Spot ETFs and On-Chain Data
Despite the challenges, there’s some good news. More and more Ethereum is being moved off of exchanges, suggesting that investors are holding onto it. This is happening at the same time that the US is expected to approve the first spot Ethereum ETFs.
If the SEC approves these ETFs, it would be a huge win for Ethereum. It would mean that the US government officially recognizes Ethereum as a commodity, just like Bitcoin. This could lead to a surge in demand and push the price higher.
Overall, Ethereum’s future is still uncertain. The $3,500 resistance level is a major hurdle, but the potential approval of spot ETFs could provide a much-needed boost. It’s going to be an exciting few weeks for Ethereum investors.
