Ethereum Price Bounces Back, Can $3500 be the Next Stop For ETH?

Ethereum Price Bounces Back, Can $3500 be the Next Stop For ETH?

July 7, 2024

Ethereum

6 min

The cryptocurrency market is showing signs of life again, with Ethereum leading the charge. After a tumultuous few days that saw prices plummet and investor panic set in, Ethereum has bounced back, recovering nearly 6% from its recent lows and reclaiming the crucial $3000 level. This resurgence comes as transaction volumes drop by 44.7%, indicating a decrease in selling pressure. With the SEC's potential approval of Ethereum ETFs on the horizon, could this be the catalyst that propels ETH to $3500? Let's delve into the factors driving this recovery and what lies ahead for Ethereum.

Ethereum Price Recovers Amid Market Turbulence

The recent bloodbath in the crypto markets seemed to be taking a pause as the weekend approached. After a sharp fall in the last couple of sessions that triggered a panic among investors, Ethereum price finally seems to be recovering. Ethereum price climbed nearly 6% from yesterday’s low and has reclaimed back the psychological $3000 level. Few analysts are hoping for the bad days to end as soon as the SEC approves spot Ethereum ETFs.

Can Ethereum ETFs Approval Turn The Tables Again?

Ethereum ETFs could bring back the optimism in the crypto markets and aid market recovery. The Ethereum ETF approval was a dual-stage process in which the initial phase was completed with the approval of the 19b-4 documents by the issuers. On May 23, the SEC gave the green light to 19b-4 submissions from eight contenders for ETFs. Moreover, the approval of S-1 forms was a later or final process which was anticipated to be completed by 2nd July.

"Fwiw, Bloomberg's @JSeyff saying week of July 8th looks more likely for spot eth ETF approval…Another source said 'it’s also a possibility that it could be later in July or later in the summer.' My take? It shouldn't take this long." - Nate Geraci (@NateGeraci) June 28, 2024

However, in a recent communication on June 29th, the U.S. Securities and Exchange Commission returned the S-1 documents proposing some changes and asked the issuers to resubmit by July 8th. Now, if the Ethereum ETFs are approved by July 8th by the US SEC, it might bring a new era in the process of crypto adoption. As expected, these changes won’t only affect Ethereum but aid the entire crypto market’s recovery.

Can Ethereum Continue To Recover Or Slump Again?

The panic selling seemed to be taking a pause today after the markets took a rebound from the previous day’s low. Despite Ethereum having reclaimed back the psychological $3000 mark, the price still hovers below the 200-day exponential moving average (EMA) indicating a possible comeback by the bears.

Now, if the bulls make a comeback above the 200-day EMA, it may indicate a bullish continuation and the price may head for a recovery. The transaction volume has dropped by 44% to $16.2 billion a day, indicating the waning interest of the sellers.

Moreover, until the Ethereum price hovers below the 200-day EMA, it may be at risk of another selloff. On the lower side, the $2850 level may act as a strong support which, if broken, may unlock price failure towards the $2500 levels.

What’s Next For Ethereum?

The cryptocurrency market seemed to be stabilizing after a sharp decline in the last couple of sessions, with Ethereum reclaiming back the $3000 level. As per a few analysts, the pending approval of Ethereum ETFs by the SEC could restore market optimism. If approved, it could mark a significant step in crypto adoption.

Furthermore, Ethereum price has recovered from the lows; however, it still hovers below the 200-day EMA. A positive crossover of price above the 200-day EMA could signal a bullish trend.

Transaction volumes have decreased, suggesting reduced selling pressure. However, at the current levels, ETH crypto faces the risk of further sell-offs until it stays below the 200-day EMA, with $2850 as critical support.

Market Sentiment and Technical Indicators

The overall market sentiment appears to be cautiously optimistic. The approval of Ethereum ETFs could potentially act as a significant catalyst for the market. Technical indicators also suggest that Ethereum is at a critical juncture. The 200-day EMA is a crucial level to watch. A break above this level could signal a strong bullish trend, while failure to do so might result in further downside.

Potential Scenarios for Ethereum

Bullish Scenario: If Ethereum manages to break above the 200-day EMA and sustain its position, it could pave the way for a rally towards $3500. The approval of Ethereum ETFs could further fuel this rally, bringing in new investors and increasing market liquidity.
Bearish Scenario: If Ethereum fails to break above the 200-day EMA and faces rejection, it could lead to a sell-off. The $2850 level would act as the first line of defense. If this support level fails, Ethereum could potentially drop to $2500 or lower.

Factors Influencing Ethereum's Price

Several factors could influence Ethereum's price in the coming weeks:

Regulatory Developments: The approval or rejection of Ethereum ETFs by the SEC will have a significant impact on the market sentiment.
Market Sentiment: General market sentiment and investor confidence will play a crucial role. Positive news and developments could boost prices, while negative news could lead to sell-offs.
Technical Indicators: Key technical levels such as the 200-day EMA will be closely watched by traders and investors. A break above or below these levels could determine the next direction for Ethereum.

Conclusion

The cryptocurrency market is at a critical juncture, with Ethereum leading the charge. The potential approval of Ethereum ETFs by the SEC could act as a significant catalyst for the market, potentially propelling Ethereum towards the $3500 level. However, the market remains cautious, and several factors could influence the price in the coming weeks. Investors should keep a close eye on regulatory developments, market sentiment, and key technical levels to navigate the market effectively.

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.

The post Ethereum Price Bounces Back, Can $3500 be the Next Stop For ETH appeared first on The Coin Republic News.

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The cryptocurrency market is showing signs of life again, with Ethereum leading the charge. After a tumultuous few days that saw prices plummet and investor panic set in, Ethereum has bounced back, recovering nearly 6% from its recent lows and reclaiming the crucial $3000 level. This resurgence comes as transaction volumes drop by 44.7%, indicating a decrease in selling pressure. With the SEC's potential approval of Ethereum ETFs on the horizon, could this be the catalyst that propels ETH to $3500? Let's delve into the factors driving this recovery and what lies ahead for Ethereum.

Ethereum Price Recovers Amid Market Turbulence

The recent bloodbath in the crypto markets seemed to be taking a pause as the weekend approached. After a sharp fall in the last couple of sessions that triggered a panic among investors, Ethereum price finally seems to be recovering. Ethereum price climbed nearly 6% from yesterday’s low and has reclaimed back the psychological $3000 level. Few analysts are hoping for the bad days to end as soon as the SEC approves spot Ethereum ETFs.

Can Ethereum ETFs Approval Turn The Tables Again?

Ethereum ETFs could bring back the optimism in the crypto markets and aid market recovery. The Ethereum ETF approval was a dual-stage process in which the initial phase was completed with the approval of the 19b-4 documents by the issuers. On May 23, the SEC gave the green light to 19b-4 submissions from eight contenders for ETFs. Moreover, the approval of S-1 forms was a later or final process which was anticipated to be completed by 2nd July.

"Fwiw, Bloomberg's @JSeyff saying week of July 8th looks more likely for spot eth ETF approval…Another source said 'it’s also a possibility that it could be later in July or later in the summer.' My take? It shouldn't take this long." - Nate Geraci (@NateGeraci) June 28, 2024

However, in a recent communication on June 29th, the U.S. Securities and Exchange Commission returned the S-1 documents proposing some changes and asked the issuers to resubmit by July 8th. Now, if the Ethereum ETFs are approved by July 8th by the US SEC, it might bring a new era in the process of crypto adoption. As expected, these changes won’t only affect Ethereum but aid the entire crypto market’s recovery.

Can Ethereum Continue To Recover Or Slump Again?

The panic selling seemed to be taking a pause today after the markets took a rebound from the previous day’s low. Despite Ethereum having reclaimed back the psychological $3000 mark, the price still hovers below the 200-day exponential moving average (EMA) indicating a possible comeback by the bears.

Now, if the bulls make a comeback above the 200-day EMA, it may indicate a bullish continuation and the price may head for a recovery. The transaction volume has dropped by 44% to $16.2 billion a day, indicating the waning interest of the sellers.

Moreover, until the Ethereum price hovers below the 200-day EMA, it may be at risk of another selloff. On the lower side, the $2850 level may act as a strong support which, if broken, may unlock price failure towards the $2500 levels.

What’s Next For Ethereum?

The cryptocurrency market seemed to be stabilizing after a sharp decline in the last couple of sessions, with Ethereum reclaiming back the $3000 level. As per a few analysts, the pending approval of Ethereum ETFs by the SEC could restore market optimism. If approved, it could mark a significant step in crypto adoption.

Furthermore, Ethereum price has recovered from the lows; however, it still hovers below the 200-day EMA. A positive crossover of price above the 200-day EMA could signal a bullish trend.

Transaction volumes have decreased, suggesting reduced selling pressure. However, at the current levels, ETH crypto faces the risk of further sell-offs until it stays below the 200-day EMA, with $2850 as critical support.

Market Sentiment and Technical Indicators

The overall market sentiment appears to be cautiously optimistic. The approval of Ethereum ETFs could potentially act as a significant catalyst for the market. Technical indicators also suggest that Ethereum is at a critical juncture. The 200-day EMA is a crucial level to watch. A break above this level could signal a strong bullish trend, while failure to do so might result in further downside.

Potential Scenarios for Ethereum

Bullish Scenario: If Ethereum manages to break above the 200-day EMA and sustain its position, it could pave the way for a rally towards $3500. The approval of Ethereum ETFs could further fuel this rally, bringing in new investors and increasing market liquidity.
Bearish Scenario: If Ethereum fails to break above the 200-day EMA and faces rejection, it could lead to a sell-off. The $2850 level would act as the first line of defense. If this support level fails, Ethereum could potentially drop to $2500 or lower.

Factors Influencing Ethereum's Price

Several factors could influence Ethereum's price in the coming weeks:

Regulatory Developments: The approval or rejection of Ethereum ETFs by the SEC will have a significant impact on the market sentiment.
Market Sentiment: General market sentiment and investor confidence will play a crucial role. Positive news and developments could boost prices, while negative news could lead to sell-offs.
Technical Indicators: Key technical levels such as the 200-day EMA will be closely watched by traders and investors. A break above or below these levels could determine the next direction for Ethereum.

Conclusion

The cryptocurrency market is at a critical juncture, with Ethereum leading the charge. The potential approval of Ethereum ETFs by the SEC could act as a significant catalyst for the market, potentially propelling Ethereum towards the $3500 level. However, the market remains cautious, and several factors could influence the price in the coming weeks. Investors should keep a close eye on regulatory developments, market sentiment, and key technical levels to navigate the market effectively.

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.

The post Ethereum Price Bounces Back, Can $3500 be the Next Stop For ETH appeared first on The Coin Republic News.

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