Ethereum has reclaimed a pivotal price territory, but bullish news such as the SEC’s approval of a spot ETH ETF could drive further gains.
Ethereum (ETH) recently reclaimed the $3,000 mark, now standing at $3,110. However, IntoTheBlock reveals that the largest altcoin by market cap encounters significant resistance at $3,200.
Ethereum has reclaimed $3,000 but faces significant resistance around $3,200.
Approximately 2M addresses that traded $ETH at this level are now at a loss, potentially ready to sell as they break even.
Bullish news can prevent this—could the Ethereum ETF be the catalyst for… pic.twitter.com/bymYgYPd0H
— IntoTheBlock (@intotheblock) July 10, 2024
Notably, selling pressure could hinder further price increases, with bears potentially leveraging $3,200 to mount a roadblock. Nonetheless, per IntoTheBlock, bullish news, such as the approval of the Ethereum ETF, might help break this level and catalyze further gains.
Interestingly, ITB data shows that the most significant resistance level appears between $3,190.22 and $3,280.95, where approximately 2 million addresses allegedly hold ETH at a loss. Notably, these addresses may sell their holdings as the price approaches their break-even point.
Potential Impact of Spot ETH ETF Approval
Recall that in June Consensys’ Jimmy Ragosa estimated that the SEC could soon approve the S-1 documents related to Ethereum spot-based ETFs.
Consensys’ prediction follows Bitwise’s amended Ethereum ETF S-1 document submission on June 18, which included updates on risk factors, legal statements, contact information, and distribution plans.
Notably, Ragosa mentioned that if these updates were the only SEC comments, the regulator could approve the S-1 filings soon. This development is capable of triggering an Ethereum rally reminiscent of the uptrend recorded following the approval of the 19b-4 filings in May.
Technical Indicators Show Mixed Signals
Other technical indicators also prove the struggle Ethereum bulls are facing. TradingView’s Alligator indicator, consisting of three smoothed moving averages, shows the blue line at $3,281.68, the red line at $3,192.08, and the green line at $3,113.78.
Currently, Ethereum’s price is slightly above the green line but below the red and blue lines. This configuration suggests the Alligator might be awakening from a sleep, potentially indicating the start of a new trend if the correct catalyst plays out .
The Relative Strength Index (RSI) is at 40.21, below the 50 mark, indicating the market remains in bearish territory. However, the recent uptick in RSI suggests a potential shift towards neutral or bullish momentum if it continues to rise.
Meanwhile, the Accumulation/Distribution (Accum/Dist) line stands at 46.945 million, indicating steady accumulation with a slight upward trend, pointing to consistent buying activity without panic selling.
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