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Elena R
Elena R
Author
Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing - accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.
- Jul 29, 2024 10:31 UTC
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Ethereum Price Rallies After ETF Debut: Is $3500 Target Next?
Ethereum ETFs launched with massive trading volume, initially driving ETH price down but then up on bullish market sentiment.
Technical indicators suggest potential upward trend for ETH, with resistance levels at $3,349 and $3,500.
Rising investor interest and increased open interest indicate potential for heightened volatility.
On July 22, Ethereum ETFs launched with a bang, racking up over $4 billion in trading volume within their first week. This remarkable start hints at a possible boost for ETH prices.
As the market turns bullish, what’s next for Ethereum?
Current Market Scenario
Following the ETFs’ debut, Ethereum’s price dropped by 13.37% from July 22 to July 26 as traders cashed in on profits. However, the sentiment shifted sharply on July 27 after Donald Trump’s supportive speech at the Bitcoin Conference 2024 in Nashville. His words sparked a bullish turnaround, and by July 29, ETH had risen above $3,345, showing an 8.74% increase in just three days.
IntoTheBlock reports that the strong debut of all nine Ethereum ETFs, with a combined trading volume of $4.05 billion, has brought fresh liquidity to the Ethereum market. This influx, along with growing investor interest, suggests ETH could soon challenge the $3,500 resistance level.
Historical Pattern
Despite the positive momentum, the first week saw mixed results. ETH dropped before its recent rise—a pattern historically linked to bullish trends. This resembles Bitcoin’s post-ETF dip in January, which was followed by a significant rally. If history repeats, Ethereum might see similar growth in August after Bitcoin’s February rally to new highs.
What the Technicals Are Telling Us
Technical indicators are also looking optimistic. The Ichimoku Cloud points to a possible upward trend, with ETH aiming to break through resistance levels at $3,349 and $3,500. If successful, ETH could climb toward $3,800. On the other hand, the Choppiness Index (CHOP) at 47.80 suggests a short-term correction might be coming, indicating a potential trend shift. The market is consolidating, with support levels at $3,226 and $3,278 serving as key baselines.
The Relative Strength Index (RSI) is above 50, and its average trendline shows a potential positive crossover, suggesting that ETH could continue to gain value this week.
Open Interest Is Picking Up
Ethereum is trading close to $3,400, marking a 4.8% increase in the past 24 hours. Recent data from CryptoQuant shows a $1.5 billion rise in ETH open interest over the last three weeks, indicating more leveraged trading. This increase in open interest often leads to higher volatility and possible liquidations, suggesting that ETH might face significant fluctuations in the coming week.
The crypto community stands at the brink of a year filled with anticipation. Will ETH hit a New ATH in August? We’re excited!
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